Mixed hints on BSP rate move keep PSEI on downslide

Mixed hints on BSP rate move keep PSEI on downslide

MANILA, Philippines — Unclear direction from the Bangko Sentral ng Pilipinas (BSP) continued to rattle investors on Thursday, with the local bourse entering a seven-session losing streak a week ahead of the next rate-setting meeting.

The benchmark Philippine Stock Exchange Index (PSEi) shed 0.34 percent, or 21.47 points, to close at 6,344.56. At the same time, the broader All Shares Index inched up by 0.05 percent, or 1.85 points, to 3,440.31.

Stock exchange data showed that 328.28 million shares worth P3.94 billion changed hands, while foreigners were net sellers, recording a net outflow of P552.19 million.

Claire Alviar, research analyst at Philstocks Financial Inc., said that investors were “seeking clear direction on interest rates amid mixed signals, making them wait for the next policy meeting despite expectations that the BSP won’t cut rates.”

READ: Asian markets swing as traders assess rates outlook

The next policy meeting is scheduled for June 27, but the central bank has previously hinted that it may mirror the US Federal Reserve’s latest move by keeping rates unchanged.

Gokongwei-led JG Summit Holdings Inc. was the top-traded stock as it fell by 6.09 percent to P27 each.

It was followed by BDO Unibank Inc., down 2.61 percent to P130.50; GT Capital Holdings Inc., up 0.71 percent to P568; Ayala Land Inc., down 1.26 percent to P27.50; and International Container Terminal Services Inc., down 1.88 percent to P334.60.

The Sy family’s SM Prime Holdings Inc. was unchanged at P26.65 per share, while SM Investments Corp. was up 0.95 percent to P848.

Other actively traded stocks were Jollibee Foods Corp., down 2.6 percent to P217.20; Converge ICT Solutions Inc., up 4.38 percent to P10.96; and DigiPlus Interactive Corp., up 3.3 percent to P14.40.

Gainers edged out losers, 92 to 86, while 58 companies closed unchanged. —Meg J. Adonis