Market slips from last minute selling

The local stock market yesterday closed the week in the red, as investors went on a selling spree as a response to the news that interest rates may be brought down soon.

MANILA, Philippines — The Philippine Stock Exchange index (PSEi) slipped by 9.51 points, or 0.14 percent, to close at 6,618.69, while the broader All Shares index dipped by 0.37 point, or 0.01 percent, to settle at 3,524.15.

Luis Limlingan, head of sales at Regina Capital Development Corp., said the market erased all of its in traday gains, as investors sold their shares at the last minute.

Limlingan said investors took a cue from the pronouncement of the Bangko Sentral ng Pilipinas (BSP) that it may slash policy rates by as early as August.

BSP Governor Eli Remolona Jr. said the Monetary Board could cut rate two times this year, with each cycle potentially by 25 basis points.

For the meantime, the central bank is keeping the benchmark rate unchanged at 6.50 percent, committing to make changes only once inflation lands within target range.

Inflation has averaged 3.4 percent from January to April, falling on the higher end of the target band of two percent to four percent for 2024.

Philstocks Financial Inc. assistant research manager Claire Alviar said the PSEi ended in the red as a consequence of negative sentiments from foreign markets, including in the US.

“Negative cues from abroad weighed on the market, prompting investors to sell shares at the last minute,” Alviar said.

A total of P19.43 billion in shares changed hands throughout the day, with winners outpacing the losers, 93 to 91, while 67 issues remained unchanged.