Stocks slump, peso nears 49 against the US dollar
Stocks ended the week lower Friday as the Philippine Stock Exchange index fell below 7,000 points to end at an eight-month low despite good corporate earnings reports
The peso neared 49 against the US dollar before closing at P48.95, a new seven-year low, at the Philippine Dealing System. The peso closed at P48.660 against the dollar on Thursday.
In a report, BDO said “the possibility of a rate hike (by the US Federal Reserve) is at a high following the release of initial jobless claims which fell more than expected to 254,000 vs the Bloomberg survey of 260,000” caused “major and minor currencies to weaken against the dollar.”
The Philippine Stock Exchange composite index lost 206.78 points to end at 6,975.09 points. Declines led advances, 152-28. Foreign funds sold P7.06 billion worth of shares but bought P4.567 billion.
A report by BDO said “investors remained sidelined as they await what a Trump presidency brings to the table.”
Some top firms disclosed earnings results, led by Ayala Corp., which told the stock exchange net income from January to September grew 11 percent to P19.6 billion, driven by robust performance in its banking, real estate, and automotive businesses.
Net income from the Bank of the Philippine Islands rose 26 percent to P17.4 billion while Ayala Land's net income climbed 17 percent to P15.1 billion, Ayala Corp said.
DMCI Holdings, Inc.'s consolidated net earnings went down by six percent to P9.2 billion from January to September Philippine National Bank reported net income went up by 21 percent from January to September, or P5.7 billion. DMS