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MANILA – Both the local equities and the peso weakened on Thursday after the Bangko Sentral ng Pilipinas (BSP) announced an off-cycle policy rate hike.
The Philippine Stock Exchange index (PSEi) declined 0.60 percent to 6,018.49 after it recovered the previous day from a five-day losing streak.
The broader All Shares also dropped 0.62 percent to 3,266.02 level, with all sectoral indices recording declines.
Philstocks Financial, Inc. research and engagement officer Mikhail Plopenio said an off-cycle 25 basis points hike in the benchmark interest rate by the BSP has added to investors’ negative sentiment on the lower closing of Wall Street due to higher US Treasury yields.
“The PSEi reached the lowest point of the year at 5,974.17 before returning above the 6,000 level in the second half session. Concerns over the ongoing conflict in the Middle East are keeping many on the sidelines as well,” he said.
Net market turnover for the day stood at PHP2.9 billion, lower than the PHP5.05 billion average year-to-date.
“Foreigners were net sellers with net outflows amounting to PHP319.07 million,” Plopenio said.
Meanwhile, the peso closed weak at 56.96 to a US dollar from previous day’s closing of 56.85.
It opened the day weak at 56.96 versus last day’s kick-off at 56.75 before trading between 56.96 and 56.90 to the greenback.
The average level for the day was at 56.96 to a dollar.
The volume of trade increased to USD1.08 billion from USD909.7 million. (PNA)
