The local stock market ended the week in the red territory, with the latest rate cut of the Bangko Sentral ng Pilipinas (BSP) failing to lift investor sentiment.
The benchmark Philippine Stock Exchange index (PSEi) declined by 0.32 percent or 19.61 points to cap off yesterday’s session at 6,037.79.
The broader All Shares index likewise slipped by 0.23 percent or 8.57 points to settle at 3,658.44.
AP Securities said that the Philippine market again ended lower after a lackluster day of trading, ‘as investors digest the BSP’s dovish tone and its implications on the outlook for the Philippine economy.’
‘The PSEi continued its decline despite the recent rate cut from the BSP. The depreciation of the peso against the dollar likely dampened investor sentiment and contributed to the cautious outlook of market participants, leading to subdued trading activity overall,’ Luis Limlingan of Regina Capital said.
The BSP’s Monetary Board made an unexpected 25-basis-point cut to its benchmark interest rate on Thursday, pointing to soft domestic demand and governance issues surrounding public infrastructure spending.
All sectors were in the negative territory, except for industrial, which improved by 0.26 percent.
Mining and oil took the biggest hit, plunging by 2.92 percent.
Total value turnover stood at P6.37 billion, slightly lower from the previous day’s P6.51 billion.
Market breadth was negative as decliners crushed advancers, 97 to 79, while 65 issues did not change hands.
Ayala Corp. was the top traded stock, shedding 2.89 percent to P471 per share, followed by BDO Unibank which fell by 1.17 percent to P134.80 and ICTSI which was flat at P526.