Manila: Local shares fell on Wednesday amid the continued conflict between Israel and Iran and ahead of the Bangko Sentral ng Pilipinas' (BSP) monetary policy meeting, while the peso also closed weaker than the dollar.
According to Philippines News Agency, the Philippine Stock Exchange index (PSEi) fell 0.50 percent to 6,337.43, while All Shares also declined by 0.29 percent to 3,772.79. Regina Capital Development Corp. head of sales Luis Limlingan noted that Philippine stocks fell as the Israel-Iran conflict entered its fifth day, coupled with a more significant than expected drop in retail sales, raising concerns about consumer spending.
While the US Federal Reserve is anticipated to maintain steady rates, Limlingan indicated that weak data might support a more dovish stance. Locally, investors remained cautious, awaiting the outcome of the BSP's latest meeting. Many are forecasting a rate cut, hoping to mitigate fears of further conflict escalation in the Middle East.
Except for the Industrial sector, which increased by 0.45 percent, all sectoral indices closed negatively. The number of advancers and decliners were almost equal at 96 to 95, with 52 shares remaining unchanged.
The peso depreciated, closing at 56.98 to a dollar on Wednesday, down from the previous day's 56.7 finish. It opened at 56.75 and traded within a range of 56.7 to 56.98, resulting in a day's weighted average of 56.84. The volume of trade saw a slight increase, rising to USD1.27 billion from USD1.20 billion on Tuesday.
