Market slips in cautious trade ahead of BSP meeting

MANILA, Philippines — Share prices inched down as investors remained cautious ahead of rate-setting meeting of the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve this week.

The benchmark Philippine Stock Exchange index slipped by 0.02 percent or 1.35 points to 6,615.16, extending its losing streak to four consecutive sessions.

Also posting a slight 0.006 percent or 0.22-point decline was the broader All Shares index, which closed at 3,752.51.

“Shares continued to trade flat as the market begins its last full trading week ahead of the holidays. For this week, the spotlight in the US is on the Federal Reserve’s interest rate decision, scheduled for release on Thursday,” Luis Limlingan of Regina Capital said.

“Locally, investors are closely monitoring the BSP’s interest rate decision, expected to announce a 25-basis-point cut, which is set to be published on Thursday, Dec. 19,” he said.

BofA (Bank of America) Securities Philippines said investors are staying mostly sidelined ahead of the policy rate decisions by the BSP and the US Fed.

“We expect the BSP to cut the policy rate (by) 25 basis points on Dec. 19,” BofA Securities said.

Net value turnover stood at P4.45 billion, with decliners edging out decliners, 99 to 87, while 65 issues were unchanged.

Sectors were mixed, but were dominated by those in the red.

The mining and oil index posted the largest drop at 1.01 percent, while financials made the biggest jump at 0.86 percent.