Stocks end lower following BSP rate hike

MANILA, Philippines — The local stock market ended the week in the negative territory following the Bangko Sentral ng Pilipinas (BSP)’s latest rate hike.

The benchmark Philippine Stock Exchange index (PSEi) declined by 0.3 percent or 18.31 points, closing at 6,135.35.

The broader All Shares index likewise shed 0.37 percent or 12.64 points to settle at 3,380.77.

“The local bourse ended lower following the BSP’s 25-basis-point rate hike, as expectations of higher fixed-income yields reduced the appeal of equities,” Luis Limlingan of Regina Capital said.

Limlingan said sentiment was further dampened by delays in peace talks in Switzerland between the United States and Iran.

RCBC chief economist Michael Ricafort said talks on a permanent deal between US and Iran that were meant to be held in Switzerland on June 19, have been delayed.

“The PSEi corrected slightly lower, considered healthy profit-taking for the third day in four trading days after the US and Iran postponed the start of their negotiations over a peace deal and restricting Iran’s nuclear program,” Ricafort said.

“A White House spokesperson cited logistical challenges for the delay; an American delegation is prepared to depart at the first available opportunity. Talks on a permanent deal between US and Iran that were meant to be held in Switzerland on Friday have been delayed,” he said.

All sectors were in the red, except for financials, which advanced by 0.75 percent. Mining and oil took the biggest hit, plunging by 3.76 percent.

Trading was strong as total value turnover expanded to P11.18 billion from the previous day’s P7.15 billion.

Market breadth was negative as decliners squashed advancers, 111 to 81, while 48 issues were unchanged.

Maynilad was the session’s top traded stock, slipping by 0.22 percent to P22.40 per share, followed by ICTSI, which fell by 1.24 percent to P913.50, and BDO Unibank, which climbed by 2.48 percent to P132.20.