Philippine Peso Decline Dampens PSEi Performance Amid Profit-Taking

The Philippine peso weakened against the US dollar on Wednesday, exerting downward pressure on the Philippine Stock Exchange index (PSEi) amid heightened profit-taking activity.

The local currency closed at 58.92 per US dollar, depreciating from Tuesday's 58.52 finish. It opened the session at 58.55 and fluctuated within a range of 58.50 to 58.92, with the daily average exchange rate settling at 58.75.

Trading volume declined to USD 1.41 billion from the previous day's USD 1.49 billion.

The PSEi reflected this currency weakness and cautious market sentiment, ending the day 1.48 percent lower at 5,905.84 points. The broader All Shares index also fell by 0.31 percent, closing at 3,464.79 points.

Sector performance was predominantly negative, led by the Services sector, which declined by 2.61 percent. The Financials sector dropped 1.17 percent, followed by Industrials (-1.04 percent), Holding Firms (-0.90 percent), and Property (-0.51 percent).

In contrast, the Mining and Oil sector was the sole gainer, inching up by 0.34 percent.

Market volume reached 889.92 million shares, with a total value of PHP 6.87 billion. Decliners outnumbered advancers, standing at 105 to 86, while 46 stocks remained unchanged.

Luis Limlingan, head of sales at Regina Capital Development Corporation, commented, "Market sentiment was subdued due to the depreciation of the Philippine peso against the US dollar. Overall trading remained cautious as investors awaited clearer market signals."