Jitters in US blunts BSP’s good news
The Bangko Sentral ng Pilipinas’ (BSP) jumbo cut on the cash requirements of banks failed to lift the local bourse on Monday as inflation jitters in the United States dampened investor sentiment.
The benchmark Philippine Stock Exchange Index (PSEi) closed flat, shedding 0.03 percent, or 2.07 points, to 6,095.97.
Likewise, the broader All Shares Index lost 0.14 percent, or 5.28 points, to close at 3,655.
Net value turnover was at P4.28 billion, or below the year-to-date average of P5.15 billion, according to Philstocks Financial Inc. Foreigners were net sellers, with foreign outflows totaling P632.57 million.
Japhet Tantiangco, research head at Philstocks, said Wall Street’s plunge last Friday triggered the weak trading at the PSEi.
He said this was due to anxiety over inflation in the United States following President Donald Trump’s latest tariff announcements.
Banks led the gainers after the BSP cut their reserve requirement ratio (RRR) by 200 basis points (bps) to 5 percent, effective on March 28. The RRR for digital banks will likewise be reduced by 150 bps to 2.5 percent, while the reserve requirement for thrift banks will be completely removed following a 100-bp cut.
Ayala Land Inc. was the most actively traded stock, down 0.87 percent to P22.90.
