PSEi slips on rate hike fears

Philippine stocks ended lower on Friday as investors turned cautious following the Bangko Sentral ng Pilipinas’ (BSP) decision to raise its inflation forecasts, fueling concerns that interest rates could stay elevated for longer.

The benchmark Philippine Stock Exchange Index (PSEi) slipped 0.30 percent or 18.31 points to close at 6,135.35.

Brokerage Philstocks Financial Inc. said investor sentiment was dampened by worries over the possibility of additional policy tightening after the BSP increased its inflation outlook for 2026 and 2027.

Adding to market uncertainty were concerns that the memorandum of understanding between the United States and Iran could still face setbacks, raising the risk of renewed geopolitical tensions.

“Selective selling was also seen in the market today after the FTSE Global Equity Index rebalancing. Furthermore, sentiment was further dampened by delays in peace talks in Switzerland between the US and Iran,” Luis Limlingan, head of sales at Regina Capital Development Corp., said.

Despite the decline, trading activity remained active. Net value turnover reached P10.71 billion, while foreign investors remained on the sidelines as net sellers, posting outflows of P451.99 million.

Sectoral performance was broadly negative, with only the banking index ending in positive territory. Banks rose 0.75 percent, bucking the market’s downtrend.

The rest of the sectors finished in the red, led by mining and oil, which dropped 3.76 percent.

Among index members, RL Commercial REIT Inc. emerged as the session’s top performer, climbing 3.77 percent to P7.15.

Meanwhile, ACEN Corp. posted the steepest decline among blue-chip stocks, falling 3.53 percent to P3.01.