PSEi falls to 5,900 level on war woes, BSP bets
PHILIPPINE SHARES retreated on Wednesday, pulling the main index back to the 5,900 level, as investors turned cautious amid worries over the Middle East conflict and ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting.
The benchmark Philippine Stock Exchange index (PSEi) fell by 0.48% or 29.14 points to close at 5,989.56, while the broader all shares index went down by 0.33% or 11.41 points to end at 3,376.12.
This was the PSEi’s lowest finish in over two weeks or since April 7’s close of 5,957.87.
“The local market declined on worries over the situation between the US and Iran. This comes as the two remain without a deal, causing the US to extend the ceasefire agreement while keeping blockade at the Strait of Hormuz,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
US President Donald J. Trump said he would indefinitely extend the ceasefire with Iran to allow for further peace talks, although it was not clear on Wednesday if Iran or Israel, the US ally in the two-month war, would agree, Reuters reported.
There was no response early on Wednesday to Mr. Trump’s announcement from senior Iranian officials, although some initial reactions from Tehran suggested Mr. Trump’s comments were being treated skeptically.
“The Philippine market retreated from early gains as investors turned cautious ahead of the Bangko Sentral ng Pilipinas policy meeting tomorrow. Trading sentiment remained guarded, with participants opting to stay on the sidelines pending clearer policy direction,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
BSP Governor Eli M. Remolona, Jr. earlier told BusinessWorld that they have room to raise rates to temper growing inflation risks amid the Middle East conflict.
A BusinessWorld poll showed that 11 out of 19 analysts expect the Monetary Board to hike the target reverse repurchase rate by 25 basis points at this week’s meeting. This would bring the benchmark rate to 4.5% and mark the BSP’s first tightening move since October 2023.
Most sectoral indices closed lower. Holding firms slid by 1.04% or 48.70 points to 4,628.67; financials sank by 0.92% or 17.59 points to 1,888.57; industrials dropped by 0.85% or 76.28 points to 8,818.31; mining and oil fell by 0.57% or 104.13 points to 18,060.84; and property slipped by 0.21% or 4.36 points to 1,986.44.
Meanwhile, services jumped by 0.55% or 15.29 points to 2,758.73.
Market breadth was negative as decliners outnumbered advancers, 105 to 83, while 66 names were unchanged.
Value turnover declined to P5.96 billion on Wednesday with 2.86 billion shares traded from the P6.91 billion with 832.76 million issues that changed hands on Tuesday.
Net foreign selling climbed to P497.60 million from P311.95 million in the previous session. — Alexandria Grace C. Magno
