MANILA – Local equities retreated on Friday as investors digested the Bangko Sentral ng Pilipinas’ latest interest rate hike and ongoing geopolitical risks, particularly in the Middle East.
The benchmark PSEi fell 0.67 percent to close at 5,943.49, while the All Shares index lost 0.52 percent to settle at 3,352.22.
Sector performance was largely negative, with Financials posting the steepest drop at 1.63 percent. Property declined by 1.15 percent, Mining and Oil by 1.04 percent, Holding Firms by 0.61 percent, and Services by 0.07 percent. Only the Industrial sector managed a modest 0.10-percent gain.
A total of 2.1 billion shares worth PHP5.5 billion were traded during the session. Market breadth remained negative, with 110 decliners, 80 advancers, and 64 unchanged issues.
The recent 25-basis-point increase in policy rates, coupled with expectations of elevated inflation averaging 6.3 percent this year, dampened market sentiment. This projection exceeds the BSP’s target range of 2 to 4 percent.
Ongoing tensions in the Middle East further added to investor caution, according to market observers.
Meanwhile, the peso depreciated to 60.70 per US dollar from its previous close of 60.48. It opened weaker at 60.69 and moved within a range of 60.67 to 60.80, averaging 60.73 for the day. Dollar trading volume eased to USD1.38 billion from USD1.82 billion previously.
ia/xf
