PSEi still down as BSP delivers expected rate pause

PSE FILE PHOTO

MANILA  – The Philippine Stock Exchange index (PSEi) extended losses on Thursday as the Bangko Sentral ng Pilipinas (BSP) announced an expected pause in interest rate hikes.

By the closing bell, the PSEi dropped 0.30 percent, or 19.3 points, to 6,404.91 while the broader All Shares index was down 0.27 percent, or 9.12 points, to 3,417.69.

The Monetary Board kept the key policy rate unchanged at 6.25 percent as BSP Governor Felipe Medalla said average inflation for the year was adjusted downward from 5.5 percent to 5.4 percent, which was still above the target range of 2-4 percent.

READ: BSP keeps key rate unchanged at 6.25%

“This is in line with the BSP’s guidance that its policy rate will remain unchanged in the next two to three meetings as it expects inflation to fall within its target band of 2 percent to 4 percent by the third quarter of 2023,” Metropolitan Bank & Trust Co. said in a bulletin ahead of the decision.

A total of 926.13 million shares valued at P5.45 billion changed hands while foreigners were net sellers of an amount worth P102.45 million.

Services outperformed on Thursday while industrial, mining and oil, property, financials and holding firms pulled back.

Ayala Land Inc. was the top traded stock as it climbed 1.72 percent to P23.70 per share. Losers edged out advancers, 106 to 73, while 47 companies were unchanged.