PH shares down as hawkish Fed trumps dovish BSP

PH shares down as hawkish Fed trumps dovish BSP

/ 02:12 AM May 25, 2024

MANILA, Philippines — The local stock market ended the week in the red, mirroring the declines in American markets as traders remained cautious of high inflation that could mean US interest rates will remain higher for longer.

By the end of the session, the benchmark Philippine Stock Exchange Index (PSEi) slid by 0.6 percent, or 40.1 points, to end at 6,619.89.

The broader All Shares Index likewise shed 0.39 percent, or 13.8 points, to 3,523.49.


This comes after both the Dow Jones Industrial Average and S&P 500 in the United States slid the previous day, following the release of the minutes of the US Federal Reserve’s recent meeting.


READ: Wall St slumps to worst day since April on worries about interest rates

“The release of the [Fed] minutes revealed heightened concerns among policymakers about the slow progress in curbing inflation,” said Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp.

Claire Alviar, research analyst at Philstocks Financial Inc., said waning hope for US rate cuts also pulled down the local market.

Rate cut in PH later in 2024

In contrast, the Bangko Sentral ng Pilipinas (BSP) gave hints of potential rate cuts later this year.

A total of 557.44 million shares valued at P4.47 billion changed hands, while foreigners made net purchases of P203.34 million, data from the stock exchange showed.

READ: Markets sink after US data deal blow to rate cut hopes


Declines in Sy family-led index heavyweights BDO Unibank Inc. and SM Prime Holdings Inc. weighed the market down.

Only the services subsector rose, buoyed by International Container Terminal Services Inc. (ICTSI) of ports tycoon Enrique Razon Jr.

BDO was the most actively traded stock as it went down by 0.59 percent to P135.70 each.

It was followed by SM Prime, which slid by 4.18 percent to P27.50; Ayala Land Inc., down 1.87 percent to P28.85; ICTSI, up 0.51 percent to P353; and SM Investments Corp., up 0.11 percent to P896.

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Ayala Corp. declined by 1.28 percent to P617; Globe Telecom Inc., unchanged at P2,006; Jollibee Foods Corp., up 0.44 percent to P230; Security Bank, down 2.14 percent to P68.50; and AREIT Inc., up 2.10 percent to P34 each. —MEG J. ADONIS

TAGS: PH shares, PSEi

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