Rate cut pause sends PSEi below 6,100
The Bangko Sentral ng Pilipinas’ (BSP) surprise move to pause the easing cycle sent the local bourse retreating below the 6,100 level on Friday.
By the closing bell, the benchmark Philippine Stock Exchange Index (PSEi) shed 0.85 percent, or 51.86 points, to 6,061.33.
The broader All Shares Index likewise lost 0.51 percent, or 18.45 points, to close at 3,629.28.
A total of 473.05 million shares worth P3.91 billion changed hands, while foreign outflows totaled P347.99 million, stock exchange data showed.
Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the selling pressure was due to the BSP’s move on Thursday to keep its policy rate unchanged at 5.75 percent. Banks use this as a guide when pricing loans.
Property firms saw the steepest decline as investors opted to sell shares of index heavyweights Ayala Land Inc. (down 3.73 percent to P23.25) and SM Prime Holdings Inc. (down 1.92 percent to P23).
The BSP’s monetary policy stance typically affects the real estate sector, as prospective homeowners look at interest rates when borrowing money to pay for their properties.
BDO Unibank Inc. was the most actively traded stock as it lost 2.07 percent to P137, followed by Universal Robina Corp., up 1.86 percent to P62.95; International Container Terminal Services Inc., down 2.87 percent to P344.80; ALI; and Bank of the Philippine Islands, up 0.62 percent to P130.
Other actively traded stocks were China Banking Corp., up 1.64 percent to P86.80; Jollibee Foods Corp., down 1.22 percent to P259.20; Philex Mining Corp., up 6.43 percent to P3.97.
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