Share prices closed lower Thursday, tracking overseas leads.
The peso was also down.
The Philippine Stock Exchange index (PSEi) was down 45.12 points, a 0.7 percent drop to 6,364.97.
The broader All Shares index was down 16.61 points or 0.48 percent to 3,409.80.
Losers edged gainers 95 to 74 with 62 stocks unchanged. Trading turnover reached P4.92 billion.
The peso closed at 56.77 to the dollar, down from 56.515 on Wednesday.
The currency opened at 56.67 and hit a high of 56.77 and a low of 56.81. Trading turnover reached $960.55 million.
Emerging Asian currencies declined on Thursday, with Malaysia’s ringgit and South Korea’s won weakening the most, as concerns over China’s slowing economic growth and higher-for-longer rates in the United States kept risk sentiment in check.
The peso dropped ahead of the central bank’s monetary policy meeting later in the day, when it is expected to leave its key interest rate unchanged at 6.25 percent for a third consecutive time. The Bangko Sentral ng Pilipinas (BSP), which has hiked rates by 425 basis points since May 2022, is expected to keep rates steady for the rest of the year to assess the impact of previous hikes on inflation.
“We think a pause could potentially weigh on the peso, especially if the statement turns out a tad more dovish than the market is expecting,” analysts at Maybank wrote in a note.
“The current environment of a firm dollar and weak yuan also supports the case for further downside for the peso.”
Mikhail Philippe Plopenio, analyst at Philstocks Financial Inc., said the market dropped due to negative spillovers from Wall Street’s drop overnight “amid hawkish statements from the Federal Reserve.”
“The Fed in their latest minutes of the meeting stated that further monetary tightening could be necessary amid perceived inflationary risks,” he said.
Plopenio also said that investors were further concerned about higher inflation expectations following BSP Deputy Governor Francisco Dakila Jr.’s statement that the BSP may raise their inflation forecast.
“Mounting growth projection downgrades for the Philippine economy also weighed on sentiment,” he added.
Most actively traded Ayala Land Inc. was steady at P30. SM Prime Holdings Inc. was down P0.10 to P30.30. International Container Terminal Services Inc. was up P3.80 to P215.80. BDO Unibank Inc. was down P1 to P142. Bank of the Philippine Islands was up P0.40 to P113.40. SM INvesments Corp. was down P25.50. Jollibee Foods Corp. was down P0.80 to P250. Ayala Corp. was down P6.50 to P593. PLDT Inc. was down P6 to P1,228. Universal Robina Corp. was down P5 to P119.90.
