PSEi slips to 6,004 on selling pressure amid anticipated BSP rate hike

Philippine share prices closed lower for the third straight trading day on Thursday, as market players were risk-averse ahead of the Monetary Board's scheduled meeting to discuss key policy rates.

The main Philippine Stock Exchange index (PSEi) shed 132.65 points or 2.16% to 6,004.58 at the closing bell, while the broader All Shares index declined by 55.07 points or 1.62% to 3,339.50.

“The local index closed lower as persistent selling pressure weighed on sentiment throughout the session,” Regina Capital Development Corp. head of sales Luis Limlingan said in a mobile message.

“The BSP’s widely anticipated 25-basis-point rate hike to 5% made investors more cautious toward equities, compounded by uncertainty in the Middle East and forecasts of slower loan growth,” he added.

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) on Thursday decided to hike rates by 25 basis points to 5.0%, the overnight deposit rate to 4.5%, and the overnight lending rate to 5.5%.

All sectoral indices closed in the red—financials down by 1.67%; industrial by 1.55%, holding firms by 1.39%, property by 0.58%, services by 3.81%, and mining and oil by 0.74%.

More than 1.082 billion shares, valued at P7.821 billion, changed hands. Decliners led advancers, 126 to 55, while 54 issues were unchanged. — BM, GMA News