Profit-taking drags down PSEi below 6,200

News of another quarter-point rate cut did not make it in time to lift the bourse on Thursday as investors opted to pocket gains. This pulled the main share index below the 6,200 mark.

By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) had dipped by 1.33 percent or 83.15 points to end at 6,190.19.

Likewise, the broader All Shares Index shed 0.75 percent or 28 points to close at 3,703.07.

A total of 953.32 million shares worth P7 billion changed hands, stock exchange data showed.

According to Luis Limlingan, head of sales at Regina Capital Development Corp., the bourse declined because of profit-taking after Wednesday’s 2-percent rally.

“But now, attention shifts to how investors will react to the [Bangko Sentral ng Pilipinas’] 25-basis-point rate cut and its implications for equity prices…,” Limlingan said.

The BSP continued its monetary policy easing and announced the rate cut just minutes before the stock market closed.

This brings the key rate that banks use as a guide when pricing loans to 5 percent. Cumulatively, reductions have totaled 1.5 percentage points under the current easing cycle.

See Also

Mitsubishi, SBC launch auto finance venture

BDO Unibank Inc. was the most actively traded stock as it lost 3.35 percent to close at P135.50.

It was followed by International Container Terminal Services Inc., down 1.03 percent to P480; SM Investments Corp., down 0.07 percent to P760; Bank of the Philippine Islands, down 2.68 percent to P112.50; and Ayala Corp., down 2.48 percent to P551 each.

Losers and gainers were tied at 99 each, while 48 companies closed unchanged, stock exchange data also showed.