Manila: The peso strengthened on Wednesday as global oil prices cooled and anticipation grew for Mynt's upcoming GCash initial public offering (IPO), though local stocks continued their downward slide. The local currency improved against the greenback, finishing the day at 62.73 from Tuesday's 62.83. It opened at 62.80, up from the previous day's 62.90. It traded between 62.68 and 62.80, bringing the day's average to 62.73. Volume reached USD1.35 billion, down from nearly USD1.9 billion the previous day.
According to Philippines News Agency, in a market report, Rizal Commercial Banking Corporation chief economist Michael Ricafort said the currency benefited from a pullback in global oil prices and market buzz surrounding GCash IPO slated for October. Oil Price Charts data from TradingEconomics.com for the day showed that Brent crude dipped to around USD107 per barrel and West Texas Intermediate at about USD104.52 per barrel. Also, Mynt Inc., the parent company of e-wallet provider GCash, is set to launch its USD1.5-billion (around PHP92.32 billion) IPO, the biggest in the local market to date.
With these two factors playing a major role during the day's trading, Ricafort expects the peso to trade between 62.65 and 62.85 against the dollar on Thursday. Despite the peso's gains, the local bourse's main index shed 1.51 percent to close at 5,916.94 points, while the broader All Shares index dropped 1.26 percent to 3,300.26 points. Only the Holding Firms counter managed to stay afloat, edging up by a marginal 0.001 percent.
The Services sector posted the steepest decline at 3.18 percent. It was followed by Industrials (down 1.26 percent), Property (down 0.89 percent), Mining and Oil (down 0.84 percent), and Financials (down 0.70 percent). Volume reached 612.54 million shares, valued at PHP 5.9 billion. Decliners outnumbered advancers, 139 to 54, while 58 shares remained unchanged.
Philstocks Research noted in a market report that 'the local market plunged further, breaching the critical 6,000 support line as local and global treasury yields continue to rise, making bonds more attractive relative to equities.' It added that 'investors are also taking a cautious stance while waiting for the Federal Reserve's policy decision.' The Federal Open Market Committee (FOMC) is widely expected to hike key rates after its Sept. 15-16, 2026 meeting as inflation pressures persist.
