MANILA, Philippines — The local bourse extended its losing streak on the first day of the shortened trading week, with banks declining the most, as investors priced in the possibility of fewer rate cuts this year.
By the end of the session on Tuesday, the benchmark Philippine Stock Exchange Index (PSEi) shed 0.23 percent, or 14.9 points, to close at 6,368.80. The broader All Shares Index also went down by 0.21 percent, or 7.21 points, to 3,440.54.
A total of 706.84 million shares worth P2.97 billion changed hands, stock exchange data showed.
This comes amid talks that the Bangko Sentral ng Pilipinas (BSP) may implement fewer interest rate cuts within the year, according to Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp.
READ: BSP unlikely to cut rates ahead of US Fed, says Nomura
The US Federal Reserve kept rates unchanged and hinted at possibly implementing only one rate cut this year, a move that analysts say may be mirrored by the BSP.
Locally, banks lost the most, declining by 1.97 percent, as index heavyweights BDO Unibank Inc., Metropolitan Bank and Trust Co. (Metrobank), and Bank of the Philippines (BPI) all went down.
Sy family-led BDO was the top-traded stock as it slipped by 3.63 percent to P132.90 per share.
It was followed by International Container Terminal Services Inc., down 0.47 percent to P338; Metrobank, down 2.74 percent to P67.50; Ayala Corp., down 0.09 percent to P573; and BPI, down 0.34 percent to P115.60 each.