Stocks end lower on BSP rate hike

MANILA, Philippines—The local stock market fell for the fourth consecutive day Friday after the central bank raised key interest rates to temper inflation.

The bellwether Philippine Stock Exchange index lost 0.69 percent or 29.61 points to settle at 4,219.07, despite touching an intra-day low of 4,173.61 or as much as 75 points lower than Thursday’s close.

The broader All-Share index also slipped 0.32 percent or 9.59 points to 2,959.21.

Of the six counters, only the mining and oil sector bucked the downtrend by closing in the green after reports said that Philex Mining Corp. had acquired a 5-percent stake in local mining firm Lepanto Consolidated Mining Co.

Trading volume reached 7.22 billion shares worth P6.71 billion with 89 stocks declining, 40 advancing and 40 ending unchanged.

Local brokers said the losing streak was due to high inflation, coupled with Wall Street’s dip the night before.

April inflation rose to its highest level in almost a year to 4.5 percent, exceeding the government’s target. This prompted the Bangko Sentral ng Pilipinas to increase its benchmark interest rates by another 25 basis points.

Among the day’s active stocks were Megaworld Corp., Alliance Global Group Inc. and Philippine Long Distance Telephone Co. Paolo G. Montecillo