Shares tumble as PH sticks it out with rate hike plans

The benchmark Philippine Stock Exchange Index (PSEi) extended losses on Friday after the Bangko Sentral ng Pilipinas (BSP) signaled that more interest rate increases were on the way after raising its inflation forecast for 2023.

The PSEi fell 1.07 percent, or 70.30 points, to 6,496.50 while the broader All Shares index dropped 0.9 percent, or 30.76 points, to 3,400.13.

BSP Governor Felipe Medalla said in an interview with Bloomberg TV they may continue to raise interest rates in the next few months after Thursday’s 50-basis point hike.

The BSP said inflation would remain elevated through next year as it increased the full-year forecast to 4.5 percent from 4.3 percent.

PSE subsectors were mostly lower, save for industrial stocks, which rose 0.13 percent.

Mining and oil fell 2.24 percent, followed by property, down 1.9 percent; services, down 1.79 percent; holding firms, down 0.86 percent; and financials, down 0.65 percent.

A total of 558.77 million shares valued at P7.31 billion changed hands while net foreign selling amounted to nearly P150 million.

Ayala Land Inc. was the top traded stock as it rose 0.86 percent to P29.25.

It was followed by BDO Unibank Inc., down 2.99 percent to P107.20; SM Prime Holdings Inc., down 4.03 percent to P33.30; ACEN Corp., down 1.33 percent to P7.40; and International Container Terminal Services Inc., up 0.49 percent to P205 per share.

PLDT Inc. was down 4.09 percent to P1,478; SM Investments Corp., down 0.11 percent to P929; Jollibee Foods Corp., down 0.86 percent to P231; Globe Telecom, down 5.74 percent to P2,070; and Bank of the Philippine Islands, down 0.05 percent to P99.95 per share.

Overall, there were 99 losers against 65 advancers while 40 companies closed unchanged, data from the stock exchange showed.

—Miguel R. Camus