BSP rate hike, peso fall snap 5-day stock rally

MANILA, Philippines —  The local stock market snapped its five-day climb following the Bangko Sentral ng Pilipinas (BSP)’s latest rate hike and the continued weakening of the peso against the dollar.

The benchmark Philippine Stock Exchange index tumbled by 0.72 percent, or 41.78 points, capping off the session at 5,779.73.

The broader All Shares index also declined by 0.54 percent, or 17.65 points, to settle at 3,220.96.

Philstocks Financial research manager Japhet Tantiangco said the local market pulled back as investors took profits following a five-day rally.

Tantiangco said investors took a cautious stance while waiting for the BSP’s policy decision, with the peso’s slide to a new record low and the rise in global oil prices also weighing on the market.

Luis Limlingan of Regina Capital said the local bourse reacted to the BSP’s 50-basis-point rate hike, reflecting the central bank’s cautious stance amid persistent inflationary pressures.

He said the move  heightened concerns over borrowing costs and its potential impact on economic activity, while continued peso depreciation added to market uncertainties.

“These factors weighed on investor sentiment, prompting cautious trading and pushing the benchmark index to close in negative territory,” Limlingan said.

All sectors were in the red, except for the mining and oil index, which inched up by 0.16 percent. Services recorded the largest drop at 0.83 percent.

Total turnover value improved to P8.21 billion from the previous day’s P7.05 billion.

Decliners battered advancers, 108 to 64, while 62 issues did not change hands.

Mynt was the top traded stock, slipping by 0.46 percent to P6.56 per share, followed by ICTSI and PLDT, which fell by 0.93 percent and 0.83 percent, respectively, to P852 and P1,190.