Stocks extend decline on rate hike de-risking

MANILA, Philippines — The local stock market took a heavy beating yesterday, extending its losing streak to three days, as investors maintained their cautious stance in line with the anticipated 25-basis-point rate hike of the Bangko Sentral ng Pilipinas.

The benchmark Philippine Stock Exchange index plummeted by 2.16 percent, or 132.65 points, to close the session at 6,004.58.

The broader All Shares index likewise plunged by 1.62 percent or 55.07 points, settling at 3,339.50.

First Metro Securities said Philippine equities extended their decline on aggressive de-risking following the BSP’s widely expected 25-basis-point hike.

It said heavyweight selling dominated as ICTSI, BDO and Ayala Corp. spearheaded the drop, easily overwhelming modest gains led by RL Commercial REIT, Aboitiz Equity Ventures and Ayala Land.

“Offshore accounts were firmly on the sell side ahead of the MSCI rebalancing and month-end flows, accelerating net foreign outflows to a substantial P2.32 billion,” First Metro Securities said.

Prevailing uncertainties in the Middle East also continued to dampen investor sentiment.

It was a bloodbath across all counters, with services taking the biggest hit, down 3.81 percent. Significant declines were also recorded by the financials and industrial indexes at 1.67 percent and 1.55 percent, respectively.

Total turnover value saw an improvement to P7.82 billion from the previous day’s P5.35 billion.

Decliners thumped advancers, 126 to 55, while 54 shares did not change hands.

ICTSI was the session’s top traded stock, shedding 4.29 percent to P881 per share. It was followed by BDO, which fell by 2.45 percent to P119.60, and Ayala Land, which improved by 0.65 percent to P15.50.