Interest rate cut failed to boost PSEi

MANILA, Philippines — The latest interest rate cut of the Bangko Sentral ng Pilipinas (BSP) failed to boost the mood of investors on Friday.The Philippine Stock Exchange Index (PSEi) retreated deeper into the 6,100 territory without stronger catalysts.

By the end of the session, the benchmark PSEi had lost 0.56 percent or 34.62 points to close at 6,155.57.

Likewise, the broader All Shares Index shed 0.44 percent or 16.19 points to end at 3,686.88.

A total of 1.63 billion shares worth P6.8 billion changed hands, stock exchange data showed.

READ: Asian stocks mixed after Wall Street hits new highs

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said that  while investors had already priced in the “widely anticipated” BSP rate cut, they were likely still looking for stronger catalysts before taking on additional risks.

At the same time, traders may have also been worried about tensions at the Federal Reserve after US President Donald Trump ordered the removal of one of the American central bank’s officials, said Michael Ricafort, chief economist at Rizal Commercial Banking Corp.

READ: Trump suggests many Americans ‘like a dictator’

BDO Unibank Inc. was the top-traded stock as it declined 0.22 percent to P135.20 each. It was followed by International Container Terminal Services Inc., up 0.63 percent to P483 and Ayala Land Inc., down 0.53 percent to P28. There were also PLDT Inc., down 5.16 percent to P1,159 and SM Investments Corp., down 0.66 percent to P755 per share.

Losers outnumbered gainers, 113 to 89, while 57 companies closed flat, stock exchange data also showed. /rwd