Stocks weaken after BSP rate hike

MANILA, Philippines — A Bangko Sentral ng Pilipinas (BSP) rate hike coupled with the prevailing uncertainty in the Middle East nudged the local stock market lower yesterday.

The bellwether Philippine Stock Exchange index inched down by 0.1 percent or 5.75 points to cap off the session at 5,983.81.

The broader All Shares index was likewise in the red, slipping by 0.19 percent or 6.4 points to 3,369.72.

“The market was a little unchanged as investors digest the 25-basis-point hike by the BSP, while market sentiment remains fragile after Iran captured two container ships in the crucial waterway, and US firing back with an interception of Iranian oil tankers,” AP Securities said.

Luis Limlingan of Regina Capital said the central bank’s rate hike weighed on sentiment, keeping risk appetite for equities subdued.

“This is still further pressured by ongoing uncertainty in the Middle East, keeping investors cautious and limiting overall market participation,” he said.

Sectoral gauges were a mixed bag, with services posting the largest increase at 0.41 percent, while mining and oil recorded the biggest drop at 1.4 percent.

Trading remained tepid as total turnover value stood at P5.74 billion, slightly down from P5.96 billion the previous day.

Decliners edged out advancers, 102 to 92, while 62 issues were unchanged.

ICTSI reclaimed its spot as the top traded stock, increasing by 0.57 percent to P710 per share, followed by banking heavyweights BDO Unibank and BPI which fell by 1.09 percent and 1.24 percent, respectively, to P117.70 and P95.40.