PSEi nears 15-month low
The local bourse tumbled to a near 15-month low on Thursday after the American central bank opted to keep interest rates unchanged, potentially affecting the Bangko Sentral ng Pilipinas’ (BSP) own decision at home.
By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) dipped by 0.74 percent, or 45.81 points, to close at 6,107.66.
Likewise, the broader All Shares Index shed 0.67 percent or 24.2 points to close at 3,599.32.
A total of 1.11 billion shares worth P4.95 billion changed hands, stock exchange data showed. Foreign outflows totaled P398.32 million.
This represents the local stock barometer’s lowest closing value since Nov. 6, 2023. The PSEi has also moved dangerously close toward the bear territory: it has so far plunged by 19.15 percent from its recent high of 7,554 last October.
Should it fall close to the 6,000 barrier, the PSEi will officially enter the bear market, as it would have declined by at least 20 percent.
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., explained that the bourse’s descent came after the US Federal Reserve kept interest rates unchanged, “signaling a cautious stance on persistent inflation.”
This worried investors as the BSP historically mirrors the Fed’s move. Earlier, analysts projected that the BSP would cut rates by up to 50 basis points (bps) this year, half of what they expected previously.
This also came amid the Philippine economy posting faster growth last year at 5.6 percent versus 5.5 percent in 2023.
