PH stocks fall below 6,900 as peso dives to 58.8 a dollar

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Philippine stocks declined for fifth straight trading day, falling below the 6,900 level on continued concerns over the weakening peso against the US

dollar, which could lead to higher inflation rate and uncertainties over US president-elect Donald Trump’s policies.

All sectors were in the negative territory, with the properties declining 2.32 percent, while industrial ended lower by 1.73 percent.Despite the market’s steep decline, three index members managed to post gains, led by DMCI Holdings Inc. which climbed 1.12 percent to P10.82. While US investors are gearing up for another strong four years as Trump cuts taxes and eases regulations, their Asian counterparts — particularly in China — are keeping a wary eye on developments amid fears of another debilitating trade war.

“The real question circulating among FX players: when will Trump’s trade agenda charge out of the gate?,” asked Stephen Innes, managing partner of SPI Asset Management. Asian markets sank, with Hong Kong giving up more than three percent at one point, while Shanghai shed more than one percent. However, some observers said the decision to come up short on stimulus last week may have been down to Chinese officials keeping their powder dry in order to react to the impacts caused by any Trump measures, such as tariffs.

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