PSEi slips as Fed unlikely to cut rates soon

MANILA  —Philippine stocks declined on Thursday as investors weighed the US Federal Reserve’s plans to lower interest rates this year after keeping the benchmark rate steady during its first policy meeting in 2024.

The benchmark Philippine Stock Exchange Index (PSEi) slumped 0.35 percent, or 23.43 points, to 6,623.01 while the broader All Shares index shed 0.38 percent, or 13.46 points, to 3,486.03.

Market observers were not expecting a reduction during the US Fed’s meeting on Wednesday but they latched onto chair Jerome Powell’s comments that a March rate cut was unlikely as “inflation is still too high.”Last December, the Fed signaled three interest rate cuts in 2024.

Meanwhile, local trading activity remained weak with 280.66 million shares valued at P4.15 billion changing hands while foreigners made net purchases of P460.42 million.

READ: Asia weathers Fed fallout, bonds still banking on rate cuts

Subsectors were mostly lower, led by mining and oil (-1.46 percent) and property (-0.86 percent). Financials rose 0.29 percent.

International Container Terminal Services Inc. was the top traded stock as it closed flat at P243 per share.

It was followed by SM Investments Corp., down 0.78 percent to P893; BDO Unibank Inc., down 0.69 percent to P144; Universal Robina Corp., down 1.17 percent to P110.20; and Ayala Land Inc., down 1.32 percent to P33.65 per share.

SM Prime Holdings Inc. was down 0.58 percent to P34.05; Bank of the Philippine Islands, up 1.72 percent to P112.50; Manila Electric Co., down 1.38 percent to P357; Ayala Corp., down 0.15 percent to P678; and Century Pacific Food Inc., up 3.49 percent to P34.10 per share.