PSEi down as weak peso trumps BSP rate cut
FILE PHOTO: Philippine Stock Exchange Index (PSEi). INQUIRER FILES
A second round of monetary policy easing was not enough to lift the local bourse on Thursday as anxious investors considered the weakening peso.
The benchmark Philippine Stock Exchange Index (PSEi) shed 0.49 percent, or 36.67 points, to close at 7,400.33.
Meanwhile, the broader All Shares Index declined by 0.52 percent, or 21.32 points, to 4,076.24.
A total of 938 million shares worth P5.91 billion changed hands, stock exchange data showed.
The market’s further retreat came a day after the Bangko Sentral ng Pilipinas cut the benchmark interest rate of banks for a second time by 25 basis points, bringing it to 6 percent.
Article continues after this advertisementREAD: Odds of a fresh rate cut pull up PSEi
Article continues after this advertisementWhile this was enough for banks to register a 0.38-percent gain, Philstocks Financial Inc. senior analyst Japhet Tantiangco said the “lingering weakness” of the local currency pulled down the PSEi, along with last-minute profit-taking.
The Philippine peso recently weakened to the 57 level against the US dollar from 55.8 a few weeks ago.
READ: PSEi continues to bog down amid weaker peso
All other subsectors declined, with the conglomerates registering the steepest drop at 1.17 percent.
Ayala Land Inc. was the top-traded stock as it slipped by 2.33 percent to P35.65 per share.
It was followed by BDO Unibank Inc., up 0.31 percent to P162.50; International Container Terminal Services Inc., up 0.34 percent to P408.40; Bank of the Philippine Islands, up 1.35 percent to P142.50; and Universal Robina Corp., down 1.28 percent to P100 each.
Other actively traded stocks were Security Bank Corp., up 2.22 percent to P99.15; Metropolitan Bank and Trust Co., down 1.72 percent to P80.10; PLDT Inc., down 1.97 percent to P1,490; Semirara Mining and Power Corp., up 0.59 percent to P34.20; and SM Prime Holdings Inc., up 0.95 percent to P32.
Losers outnumbered gainers, 102 to 92, while 64 companies closed unchanged, stock exchange data showed.
