The local stock index slipped on Thursday as bond jitters returned to spook global markets ahead of a closely-watched local monetary setting.
The main-share Philippine Stock Exchange index (PSEi) shed 22.48 points or 0.26 percent to close at 8,645.08, tracking the overnight slump in Wall Street.
After the day’s closing, the inflation-targeting Bangko Sentral ng Pilipinas announced that it had kept key interest rates unchanged despite the spike in the January inflation rate to a three-year high. However, it raised inflation forecasts this year and next year to 4.3 percent and 3.5 percent, respectively, from 3.4 percent and 3.2 percent.
Looking forward, Papa Securities said the market may not be out of the woods yet as volatility remained high.
“With this, it might be best to raise cash and sell on strength closer to the index’ initial resistance of 8,700 given the possibility of sudden downturns in the US market,” Papa Securities said in a research note.
“Likewise, we recommend buying near the trend channel support at 8,380,” it added.
The PSEi was weighed down by the financial, industrial, holding firm, services and mining/oil counters.
On the other hand, the property counter slightly firmed up.
Value turnover for the day amounted to P7.11 billion.
Despite the PSEi’s decline, market breadth was positive as investors scouted for buying opportunities outside the main basket. There were 107 advancers that edged out 92 decliners while 60 stocks were unchanged.
The PSEi was weighed down most by URC, which fell by 2.29 percent, while SM Investments, PLDT, Merobank and Semirara all lost over 1 percent.
Jollibee, AGI, Security Bank and BPI also slipped.
One notable decliner outside of PSEi stocks was Megawide, which fell by 3.5 percent after a rival bidder for the NAIA rehabilitation announced a unit of Changi of Singapore as the consortium’s technical partner.
Meanwhile, Ayala Corp., BDO, SM Prime and Megaworld slightly firmed up.
Among the non-PSEi stocks that outperformed that market was integrated gaming operator Bloomberry, which surged by 5.16 percent and was the day’s most actively traded company. The government announced a nationwide moratorium on the granting of new casino license, which is seen to benefit incumbent players.
Ayala-led IMI surged by 8.65 percent ahead of its $100-million stock rights offering.
Now Corp. rose by 4.83 percent while retailer Wilcon added 3.41 percent. MacroAsia gained 1.63 percent.