PSEi swing back below 6,000 ahead of BSP policy meet

Philippine stocks dropped back on Wednesday as investors turned cautious amid renewed concerns over the conflict between the United States and Iran. This also happened ahead of the monetary policy meeting of the Bangko Sentral ng Pilipinas on Thursday.

The benchmark Philippine Stock Exchange Index (PSEi) declined by 0.48 percent or 29.14 points to close at 5,989.56.

Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said trading sentiment remained guarded. Participants opting to stay on the sidelines pending clearer policy direction.

Philstocks Financial research manager Japhet Tantiangco said the market retreated as worries over the geopolitical situation persisted, particularly with no deal in place and continued disruptions around the Strait of Hormuz.

Back home, trading activity remained subdued, with net value turnover at P5.26 billion. This was below the year-to-date average of P6.44 billion, reflecting weak participation.

Foreign investors were net sellers for the session, pulling out P497.6 million from the local bourse.

Sectoral performance was mostly negative, with only the services index managing to post gains, up 0.56 percent. Conglomerates led the decline, dropping 1.04 percent.

Market breadth was also weak as decliners outpaced advancers, 105 to 83.

Semirara Mining and Power Corp. emerged as the top gainer, rising 1.18 percent to P30.10.

Universal Robina Corp. was the biggest laggard, falling 2.02 percent to P63.00.

Ron Acoba, chief investment strategist at Trading Edge Consultancy, said adding to the policy meeting’s pressure, the US blockade is raising risks to the country’s domestic crude supply. This meant that the issue is not just elevated prices, but also potential constraints on access.

“While the central bank is widely expected to keep rates steady, it will likely strike a hawkish tone and signal that a rate hike remains on the table for its next meeting, given rising oil prices and the resulting uptick in inflation expectations,” Acoba said.

Analysts said cautious sentiment is likely to persist as investors continue to monitor geopolitical developments, which could influence oil prices and broader market direction.