Peso rebounds as market fell below 6,400

The Philippine peso maintained its strength for two consecutive trading days and rebounded against the US dollar.

The peso was up by 0.10 on Thursday's trade, closing at 58.58 versus the dollar from Tuesday's 58.68 finish.

It opened the day strong at 58.58 from the previous day's kick-off point of 58.74 to the dollar.

The currency pair traded between 58.47 and 58.69, bringing the average daily level to 58.59 for the greenback.

The trade volume reached $1.32 billion on Thursday from USD1.05 billion last Tuesday.

Meanwhile, the local bourse sustained its shedding for the third trading day, going down below the 6,400 level on Thursday, following the latest trade deficit data and the statement of the Chief Executive on inflation.

The Philippine Stock Exchange index (PSEi) declined by 0.30 percent, or 19.24 points, to finish the day at 6,390.83.

All Shares also shed 0.20 percent with 3,443 points.

"April's balance of trade deficit seemed to have weighed on investor sentiment, as this poses depreciation risks to the already weakened Philippine peso," Philstock Financials, Inc. research and engagement officer Mikhail Plopenio said.

"Also, remarks from President Ferdinand R. Marcos Jr., stating that inflation remains a main concern due to uncontrollable forces, tempered rate cut hopes despite it staying within the government's target range," Plopenio added.

Only Property and Services ended in the green territory, gaining by 1.04 percent and 0.01 percent, respectively.

Thursday's biggest loser was Mining and Oil index, down by 1.02 percent to 8,790.19 points; followed by Holding Firms, down by 0.94 percent to 5,583.83; Industrial, down by 0.57 percent to 8.997.05; and Financials, down by 0.04 percent to 1,960.27.

Losers outpaced gainers at 110 to 73, leaving 48 counters unchanged.