Stocks, peso fall

Local currency closes at lowest level in 18 months

- RICHMOND MERCURIO and KEISHA TA-ASAN

The stock market plunged deeper in the red, falling back to the 6,400 level due to economic concerns, while the peso weakened to near all-time low against the dollar.

The benchmark Philippine Stock Exchange index yesterday dropped by 89.93 points or 1.38 percent to 6,411.41, extending its losing streak to four days.

It was the lowest level for the stock market barometer in over a month since closing at 6,404.97 on April 16.

The broader All Shares index likewise lost 0.94 percent or 33 points to end Wednesday's session at 3,451.74.

Luis Limlingan of Regina Capital said Philippine shares succumbed to more profit taking, sinking the index to 6,400 as concerns over inflation, weak demand at treasury auction and cautious statements from policymakers dampened sentiment.

"Geopolitical tensions, like US-China issues impacting Boeing and fluctuations in vaccine stocks due to bird flu concerns added to volatility," he said.

Philstocks Financial's Claire Alviar said investor sentiment was dampened by the latest Monetary Policy Report, which stated that the Bangko Sentral ng Pilipinas sees the Philippines' economic growth missing the government's target in 2024 and 2025 due to the impact of high interest rates.