PSEi slips as central bank hikes rates

Local stocks extended losses on Thursday as the Middle East war and the local central bank’s interest rate hike dampened sentiment.

The benchmark Philippine Stock Exchange Index (PSEi) dipped 0.10 percent or 5.75 points, to close at 5,983.81, slipping below the 6,000 level.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said that the Philippine market ended slightly lower as the central bank’s rate hike kept risk appetite for equities subdued.

“Sentiment was further dampened by the BSP’s unexpected move to raise interest rates by 25 basis points to 4.5 percent, defying expectations of a pause, as it pointed to inflationary pressures driven by rising oil prices,” said Ron Acoba, chief investment strategist at Trading Edge Consultancy.

Philstocks financial research manager Japhet Tantiangco said that sentiment remained fragile as investors monitored the unresolved conflict between the United States and Iran, with no clear agreement in sight.

Back home, trading activity was subdued, with net value turnover at P5.42 billion, below the year-to-date average of P6.43 billion.

Foreign investors continued to exit, posting net outflows of P597.74 million.

Sectoral performance was mixed, with services leading gains, up 0.41 percent. Mining and oil stocks were the worst performers, declining 1.4 percent.

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Market breadth was negative, with decliners edging out advancers, 102 to 92.

Among index heavyweights, San Miguel Corporation led gainers, climbing 2.56 percent.

ACEN Corp. was the main laggard, dropping 3.73 percent.