PSEi drops 2.1% on ICTSI sell-off, BSP rate policy jitters
Local stocks retreated Wednesday as investors took profits on International Container Terminal Services Inc. (ICTSI) and stayed cautious ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting.
The benchmark Philippine Stock Exchange Index (PSEi) fell 2.10 percent, or 130.94 points, to close at 6,114.81.
READ: BSP poised to hike interest rates – poll
Ron Acoba, chief investment strategist at Trading Edge Consultancy, said the PSEi declined as investors took profits following the market’s sharp one-day rally earlier this week, while awaiting the monetary policy decisions from the BSP and the US Federal Reserve.
Brokerage Philstocks Financial Inc. said the market’s decline was largely driven by profit-taking in ICTSI, which emerged as the day’s biggest drag on the benchmark index.
Investors also traded cautiously while awaiting the BSP’s interest rate decision on Thursday. Market participants are bracing for a possible 25-basis-point rate hike, adding to uncertainty in the local bourse.
Healthy trading
Despite the decline, trading activity remained robust. Net value turnover reached P7.41 billion, indicating sustained market participation.
Foreign investors, however, turned net sellers, posting net outflows of P127.54 million.
Sectoral performance was broadly negative, with only the banking index ending in positive territory. Banks gained 1.37 percent, while the services sector suffered the steepest decline, shedding 4.59 percent.
Among blue-chip stocks, Globe Telecom Inc. led the gainers after climbing 5.05 percent to P1,809 per share.
The latest pullback came a day after the market slipped from a recent rally that had pushed the PSEi to its highest level in more than three months.
Analysts said investors are watching the BSP for signals on its rates policy and the economic outlook.
Higher borrowing costs curbed corporate expansion and consumer spending, while lower rates supported economic growth and earnings.
For now, investors remain cautious amid uncertainty over inflation and monetary policy. /pai INQ
