BSP rate cut pause spooks investors; PSEi down
Anxiety over the Bangko Sentral ng Pilipinas’ (BSP) move to pause its easing cycle spilled over this week as cautious investors again dragged the local bourse below 6,000.
By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) lost 1.12 percent, or 67.85 points, to 5,993.48.
The broader All Shares Index likewise shed 0.5 percent, or 18.12 points, to close at 3,611.16.
A total of 1.23 billion shares worth P5.32 billion changed hands, stock exchange data showed, with foreign outflows totaling P991.98 million.
READ: PSEi plunges into bear territory
Japhet Tantiangco, research head at Philstocks Financial Inc., said investors were still “concerned with the pace of the BSP’s policy easing” after the central bank opted to keep its key rate unchanged.
At the same time, traders also opted to sell shares amid a lack of fresh catalysts and while waiting for more corporate earnings results, according to Wendy Estacio-Cruz, research head at Unicapital Securities Inc.
Property firms saw the steepest decline after investors shed stocks of index heavyweights Ayala Land Inc. (down 3.66 percent to P22.40) and SM Prime Holdings Inc. (down 5 percent to P21.85).
International Container Terminal Services Inc. was the top-traded stock as it gained 1.51 percent to P350 each.
It was followed by ALI, SM Prime, Bank of the Philippine Islands (down 1.54 percent to P128) and SM Investments Corp. (down 4.21 percent to P785.50).
Other actively traded stocks were Philex Mining Corp., which soared by 16.37 percent to P4.62 each following reports that spot gold prices inched to near record-high; BDO Unibank Inc., up 1.17 percent to P138.60.
