Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Philippine Peso Drops to Two-Week Low on Stock Market Outflows

Don't Miss Out —
Follow us on:

March 20 (Bloomberg) -- The Philippine peso fell to a two-week low and government bonds advanced after foreign investors pulled money from local stocks as the benchmark share gauge extended its retreat from a record.

Funds based overseas sold $47 million more local stocks than they bought in the first two days of this week, exchange data show. The Philippine Stock Exchange Composite Index has lost 6.1 percent since reaching its highest close on March 6. The dollar gained against most major currencies today as investors favored the safest of assets after the Cypriot parliament voted down a bank-deposit levy needed to secure a bailout, risking renewed tumult in Europe.

“There are stock-market outflows and the dollar is a bit strong against other currencies because of the Europe concern,” said Jonathan Ravelas, chief market strategist at BDO Unibank Inc. in Manila. “The stock market is overvalued.”

The peso weakened 0.1 percent to 40.737 per dollar in Manila, according to prices from Tullett Prebon Plc. It touched 40.763 earlier, the lowest level since March 7. One-month implied volatility, a measure of expected moves in the exchange rate used to price options, increased 15 basis points, or 0.15 percentage point, to 3.82 percent.

The yield on the 6.125 percent government bonds due October 2037 dropped six basis points to 4.13 percent, according to noon fixing prices from the Philippine Dealing & Exchange Corp.

To contact the reporter on this story: Lilian Karunungan in Singapore at lkarunungan@bloomberg.net

To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.