Peso hits new record low, stocks slip; US Fed rate hike fears weigh

MANILA, Philippines — Local stocks fell on Monday as the peso sank to a new record low, while concerns over a possible tightening by the US Federal Reserve further dampened investor sentiment. The benchmark Philippine Stock Exchange Index (PSEi) fell 0.11 percent, or 6.92 points, to close at 6,083.68. READ: Peso breaches 62.7 per dollar as Fed hike bets lift greenback Japhet Tantiangco, research manager at Philstocks Financial Inc., said the peso’s decline weighed on the local bourse after the currency touched a fresh intraday record low of 62.78 against the US dollar. “The negative cues from Wall Street amid concerns of a possible tightening by the Fed following strong August job figures in the US also weighed on the local market,” Tantiangco said. Luis Limlingan, heading of sales at Regina Capital Development Corp., said the local index closed lower as investors remained cautious amid the continued depreciation of the local currency against the greenback. “Moreover, ongoing tensions surrounding Iran and US and elevated oil prices continued to weigh on market sentiment,” Limlingan said. READ: Iran threatens greater force if US launches more attacks Trading remained tepid, with net value turnover reaching only P3.33 billion. Foreign investors also stayed on the sidelines, recording net outflows of P311.06 million. Sectoral performance was mixed. Industrials led the market after gaining 0.97 percent, while the property sector fell the most with a 0.38-percent decline. Manila Electric Co. was the day’s top index performer, climbing 3.90 percent to P480 per share. DigiPlus Interactive Corp., meanwhile, was the biggest index laggard, dropping 3.10 percent to P9.38 per share. Analysts said the combination of a weaker peso, cautious foreign investors and renewed concerns over US monetary policy kept buying appetite subdued at the start of the trading week. /pai