Peso strengthens as investors take profits

The Philippine peso strengthened against the US dollar on the last trading day of the week, even as the local stock market saw a downturn as investors took profits.

The peso closed at 58.03 per dollar, appreciating from its previous finish of 58.18. It opened at 58.05 and traded between 57.95 to 58.09, with a weighted average of 58.01. The day's total trade volume reached $1.28 billion, slightly lower than the $1.51 billion recorded in the prior session.

Meanwhile, the Philippine Stock Exchange index (PSEi) declined by 1.39% to 6,154.99, while the broader All Shares index dropped by 0.63% to 3,663.64. Except for Mining and Oil, all sectors ended in the red, with Services, Holding Firms, and Industrial posting the biggest losses. Decliners outpaced advancers 115 to 75.

Regina Capital Development Corp. Head of Sales Luis Limlingan attributed the market pullback to profit-taking ahead of the long weekend, as investors assessed the latest consumer price index (CPI) report and other global economic developments.

Despite the stock market's dip, the peso's appreciation reflects positive market sentiment toward the local currency amid external economic movements. Traders will continue monitoring global financial trends and economic data releases that could impact the peso’s performance in the coming sessions.