Share prices ended lower Monday amid lack of strong leads.
The Philippine Stock Exchange index was down P54.95 to P6,857.90, a 0.8 percent drop.
The broader all shares index was down 29.51 points to 4,266.33, a 0.69 percent drop.
Losers edged gainers 165 to 42 with 36 stocks unchanged. Trading turnover reached P7.23 billion.
The peso closed at 50.24 to the dollar, down from 49.95 on Friday.
The currency opened at 50.08 and hit a high of 50.05 and a low of 50.24. Trading turnover reached $1.12 billion.
The dollar gained while investors awaited further signals from the Federal Reserve on stimulus tapering, and escalating woes at indebted developer China Evergrande sapped risk appetite and led traders towards the safe-haven greenback.
Concerns around Evergrande’s ability to meet its imminent payment obligations have cast a shadow over Asian markets in recent weeks as it poses broader risks to China’s financial system.
The peso lost 0.2 percent, ahead of a Bangko Sentral ng Pilipinas (BSP) meeting this week.
“The (peso) can come under some pressure as the BSP leaves rates unchanged, focusing on supporting growth while raising 2021 inflation forecasts further above its target range,” Barclays analysts added.
BSP last week sharply cut its current account surplus projection for this year and forecast a deficit next year, citing risks from the emergence of highly transmissible COVID-19 variants.
Luis Limlingan, managing director at Regina Capital and Development Corp., said stocks were “off to a slow start as no economic data releases are on the schedule” both locally and in the US.
“However, housing and jobs data will be out by September 21 and 22, respectively. More importantly, the Federal Reserve will meet on September 23 to discuss its policies. The investors have been anticipating this meeting as the market expects it would give more color on the timing of the Fed’s planned scaling back of its asset purchases,” he said.
Back home, investors are also waiting for the Monetary Board’s meeting on September 23.
Moreover, the August BoP will be out by September 24.
Most actively traded Converge Information and Communication Technology Solutions Inc. was down P0.05 to P34.45. PLDT Inc. was up P38 to P1,510. Monde Nissin Corp. was down P0.20 to P19.30. JG Summit Holdings Inc. was down P1 to P63.80. Ayala Corp. was down P11.50 to P800. Aboitiz Power Corp. was up P0.80 to P33.45. AC Energy Corp. was up P0.04 to P10.40. Aboitiz Equity Ventures Inc. was up P0.55 to P50.55. International Container Terminal Services Inc. was up P2.90 to P190.90. Globe Telecom Inc. was down P28 to P2,972.
