FILE PHOTO: Philippine Stock Exchange Index (PSEi). INQUIRER FILES
MANILA, Philippines — 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.
READ: US stocks end higher after earnings, ECB rate cut
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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.
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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. Still, the pace of growth fell short of the Marcos administration’s target of 6 percent to 6.5 percent.
Mining and oil firms, as well as conglomerates, took most of the damage from Thursday’s decline. Meanwhile, investors snapped up shares of property and services companies.
International Container Terminal Services Inc. was the top-traded stock as it rose by 0.52 percent to P351 per share.
It was followed by SM Investments Corp., down 3.28 percent to P795; Bank of the Philippine Islands, down 0.8 percent to P124.50; Ayala Land Inc., down 0.61 percent to P24.50; and BDO Unibank Inc., down 0.35 percent to P141.50 each.
Other actively traded stocks were SM Prime Holdings Inc., up 2.34 percent to P24.05; Philippine Seven Corp., up 1.33 percent to P64.90; Wilcon Depot Inc., up 1.67 percent to P8.54; China Banking Corp., down 2.69 percent to P66.95; and Ayala Corp., down 0.63 percent to P549 each.
Losers edged out gainers, 118 to 76, while 36 companies closed unchanged, stock exchange data showed.