PSEi falls below 6,000 level after off-cycle rate hike

Philippine share prices closed on a weak note on Friday, with the local bourse benchmark falling below the 6,000 level as the off-cycle policy rate hike sent jitters across the market.

The benchmark PSEi lost 56.50 points or 0.94% to 5,961.99 at the closing bell.

The broader All Shares slipped by 19.55 points or 0.60% to close at 3,246.47.

Seedbox Securities Inc. equity trader Jayniel Carl Manuel said the recent performance of the PSEI “marks a significant shift in the local bourse.”

“This drop has brought the index to its lowest point in a year, breaching the psychological support at the 6,000 level, which many considered to be a strong support,” Manuel said.

“The recent off-cycle rate hike announced by the BSP (Bangko Sentral ng Pilipinas) has further impacted investor confidence.”

On Thursday, the BSP’s policy-setting Monetary Board delivered an off-cycle 25 basis point rate hike. 

This is an off-cycle monetary policy action, as the Monetary Board was originally scheduled to meet on November 17 to decide on key policy rates.

This is the first time since April that monetary authorities have adjusted policy rates.

“This unexpected policy change, coupled with ongoing geopolitical tensions between Hamas and Israel, has introduced significant uncertainty into the market. These global conflicts have also played a role in the instability of oil prices, given the region's importance in the energy markets,” Manuel said.

“As a result, investors have adopted a more cautious approach, contributing to the series of declines we've witnessed since last week,” he added. —VBL, GMA Integrated News