Peso dips, stock market flat

The peso weakened slightly and the stock market was relatively flat as sentiment remained weighed down by uncertainties over US President Donald Trump's trade policies.

The currency closed at P56.68 to the dollar, down by seven centavos, while the benchmark Philippine Stock Exchange index (PSEi) added 7.59 points, or 0.12 percent, to end the day at 6,145.59.

The broader All Shares gained 6.83 points, or 0.19 percent, to 3,652.14.

The peso opened at P56.65:$1 and ranged from P56.6 to P56.77. Volume reached P1.458 billion, slightly higher than the P1.458 billion recorded on Monday.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the currency weakened following news that the country's balance of payments had swung to a deficit as the dollar gained against major global currencies.

Philstocks Financial Inc. research manager Japhet Tantiangco, meanwhile, said the PSEi "moved sideways" as investors remained cautious "amid lingering uncertainties connected to the US' trade policies and its impact on the global economy."

Trading remained tepid with net value turnover at P4.31 billion, he added, and a net outflow of P38.76 million meant that foreigners were net sellers.

Regina Capital Development Corp. Managing Director Luis Limlingan, meanwhile, said "Philippine shares managed to eke out minor gains once again as the market brushed off [US] President [Donald] Trump's renewed attack on [US Federal Reserve] Chair Jerome Powell."

"For the US market, it was a sell-off once again as the rhetoric of the POTUS (president of the United States) sparked concerns over central bank independence, while global trade negotiations showed little progress, weighing on sentiment," he added.

"Meanwhile, the Philippine market posted modest gains as investors resumed bargain hunting, supported by optimism around strong corporate fundamentals and confidence in the local economy's ability to weather external risks, including US tariff pressures."

All sector indices but one closed in the green, with mining and oil up the most by 1.82 percent. Financials was the sole loser, down 0.21 percent.

On a company basis, gainers outnumbered decliners, 95 to 83, while 52 were unchanged.