MANILA, Philippines — Local stocks retreated on Thursday as investors locked in gains after a five-day rally and awaited the Bangko Sentral ng Pilipinas’ (BSP) policy decision.
The benchmark Philippine Stock Exchange Index (PSEi) fell 0.72 percent, or 41.78 points, to close at 5,779.73, as a weaker peso and higher global oil prices fueled market jitters.
READ: BSP jolts markets with jumbo rate hike
Philstocks Financial Inc. attributed the pullback to profit-taking and caution ahead of the central bank’s announcement.
The BSP eventually raised its policy rate by 50 basis points.
Luis Limlingan, head of sales at Regina Capital Development Corp., said the move heightened concerns over borrowing costs and its potential impact on economic activity, while continued peso depreciation added to market uncertainties.
“These factors weighed on investor sentiment, prompting cautious trading and pushing the benchmark index to close in negative territory,” Limlingan said.
READ: Peso sinks beyond 63.4:$1
Peso, oil surge weigh on sentiment
The peso’s slide to a record low of P63.545 against the dollar also weighed on sentiment, alongside rising global oil prices, the brokerage said.
Trading remained active, with net value turnover reaching P7.54 billion. Foreign investors were net buyers, recording P1.20 billion in net inflows despite the market’s decline.
Mining and oil were the only sectors to finish higher, edging up 0.16 percent.
All other sectors declined, with services posting the steepest loss at 0.83 percent.
Among index stocks, AREIT Inc. led gainers with a 1.79-percent advance. Century Pacific Food Inc. was the biggest drag, falling 4.27 percent. /pai