PSEi extends losses as properties slump

MANILA  -The benchmark Philippine Stock Exchange index (PSEi) extended losses on Friday as large property developers slumped.

This came as the Bangko Sentral ng Pilipinas (BSP) signaled it would prioritize efforts to slow inflation despite ordering a cut in the reserve requirement ratio of banks, which would unleash more liquidity into the financial system.

The PSEi sank 0.49 percent, or 32.21 points, to 6,507.15 while the broader All Shares index lost 0.24 percent, or 8.53 points, to 3,476.18.

The lowering of the reserve requirement ratio will release about P325 billion into the financial system.

BSP cuts banks’ reserve requirements starting June 30

The BSP cautioned that decision did not “constitute any shift in the BSP’s monetary policy settings”.

Ayala Land and SM Prime declined on Friday, dragging down the property subsector by 2.16 percent. Holding firms and industrial stocks also slipped while financials, services, and mining and oil rose.

Globe Telecom was a top-traded gainer after company president Ernest Cu said they were readying public listing plans for their mobile wallet GCash.

A total of 1.22 billion shares valued at P5.7 billion changed hands while foreigners were net sellers to the tune of P202.1 million.

Ayala Land was the most actively traded stock as it dropped 3.68 percent to P24.85 per share, followed by Ayala Corp., up 0.37 percent to P679.50; Globe Telecom, up 3.78 percent to P1,785; SM Prime Holdings, down 2.53 percent to P32.80; and Bank of the Philippine Islands, up 1.26 percent to P104.30 per share.