Share prices ended down yesterday as investors await the move this Thursday of the Bangko Sentral ng Pilipinas’ (BSP) and the US Federal Reserve on interest rates.
The peso closed lower.
The Philippine Stock Exchange index was down 1.77 points, a 0.03 percent drop to 6,124.57.
The broader All Shares index fell 10.94 points or 0.33 percent to 3,309.24.
Losers edged gainers 121 to 58 with 52 stocks unchanged. Trading turnover reached P3.65 billion
The peso closed at 56.866 to the dollar, down from 56.815 on Friday. The currency opened at 56.80 and hit a high of 56.74 and a low of 56.875. Trading turnover reached $821.1 million.
Asian currencies were muted on Monday in a week packed with central bank meetings including Bank Indonesia and the BSP, Reuters reported.
Investors also keenly awaited monetary policy decisions from the US Fed, the Bank of Japan and the Bank of England, due later this week.
“Sentiments seem to be treading on some ‘calm before the storm’ in the lead-up to a series of key central bank ‘live’ decisions this week,” said Yeap Jun Rong, market analyst at IG.
Bank Indonesia and the BSP are expected to keep rates steady at their respective policy meetings on Thursday.
At the end of its two-day meeting on Wednesday, the Fed is expected to hold rates but stay hawkish, while the Bank of England is tipped to hike rates for the 15th time on Thursday.
Separately, an extended rally in oil prices to a 10-month high on Friday stoked inflationary pressures and further weighed on net importer of Asian currencies such as the Indian rupee, the South Korean won and the Thai baht.
Claire Alviar, analyst at Philstocks Financial Inc., said the market’s drop happened amid a lack of strong catalyst as investors await the meeting of the BSP and the US Fed.
“The street widely expects the BSP will keep the benchmark rate steady at 6.25 percent,” said Luis Limlingan, managing director at Regina Capital and Development Corp.
Most actively traded PLDT Inc. was down P33 to P1,096. Aboitiz Power Corp. was up P0.10 to P31.70. BDO Unibank Inc. was up P0.50 to P127.50. SM Prime Holdings Inc. was down P0.15 to P29.25. Ayala Land Inc. was up P0.65 to P27.80. SM Investments Corp. was up P7 to P810. Metropolitan Bank and Trust Co. was down P1.10 to P52. Bank of the Philippine Islands was down P2 to P108. Semirara Mining and Power Corp. was up P0.50 to P35. GT Capital Holdings Corp. was down P5.50 to P586.50.
