Investors turn cautious ahead of BSP policy meeting
Cautious investors spoiled a seven-day winning streak for the benchmark Philippine Stock Exchange Index (PSEi) as they pocketed profits ahead of an expected key interest rate hike by the Bangko Sentral ng Pilipinas (BSP).
The PSEi slipped 0.46 percent, or 31.65, to close on Wednesday at 6,818.99 while the broader All Shares Index dipped 0.14 percent, or 5.2 points, to 3,619.88.
A total of 1.17 billion shares valued at P8.04 billion changed hands while foreigners were net buyers to the tune of P857.1 million, data from the stock exchange showed.
BSP Governor Felipe Medalla said on Wednesday the latest inflation print of 6.4 percent in July had raised the possibly of a 50-basis point interest rate increase on Thursday’s monetary policy meeting, apart from another increase later this year.
Medalla, speaking at a panel hosted by the Economic Journalists Association of the Philippines in partnership with San Miguel Corp., added that inflation would likely breach the government’s target range of 2-4 percent.
PSE subsectors were mixed as the industrial, property, financials and services pulled back while mining and oil and holding firms gained.
Article continues after this advertisementBDO Unibank Inc. was the top traded stock as it added 2.23 percent to P128.20 per share.
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It was followed by Ayala Land Inc., down 2.65 percent to P29.40; International Container Terminal Services Inc., down 1.06 percent to P186; SM Investments Corp., up 0.23 percent to P882; and Ayala Corp., up 0.65 percent to P775 per share.
Converge ICT Solutions Inc. was up 1.34 percent to P19.66; Solar Philippines Nueva Ecija Corp., up 0.56 percent to P1.80; Bank of the Philippine Islands, down 2.72 percent to P93; PLDT Inc., down 2.68 percent to P1,708; and Philex Mining Corp., up 5.62 percent to P3.38 per share.
Overall, there were 117 advancers against 94 decliners while 34 companies closed unchanged.
