PSEi falls as market digests BSP's latest rate hike

Philippine share prices ended the week on the red, as market players digested the latest rate hike implemented by the Bangko Sentral ng Pilipinas (BSP).

The main PSEi lost 18.31 points or 0.30% to close at 6,135.35. The broader All Shares index shed 12.64 points or 0.37% to 3,380.77.

“The local bourse ended lower following the BSP's 25 bps rate hike, as expectations of higher fixed-income yields reduced the appeal of equities,” Regina Capital Development Corp. head of sales Luis Limlingan said in a mobile message.

The BSP on Thursday raised its key policy rates by 25 basis points, citing “strong inflationary pressures” amid high global oil and fertilizer prices.

The central bank now expects inflation to average 6.4% this year, slightly higher than the 6.3% forecast made during its previous policy meeting, with Governor Eli Remolona Jr. citing global supply shocks stemming from the conflict in the Middle East.

Nearly all sectoral indices closed in negative territory, with industrial down 0.09%, holding firms down 0.80%, property down 0.28%, services down 0.84%, and mining and oil down 3.76%.

More than 1.321 billion shares, valued at P11.175 billion, changed hands. Decliners led advancers, 111 to 81, while 48 were unchanged. — VBL, GMA News