Risk aversion continued to hit the local stock market as all eyes focused on the respective policy meetings of the Bangko Sentral ng Pilipinas (BSP) and the US Federal Reserve on Thursday.
The Philippine Stock Exchange index closed down 32.63 points or 0.5 percent at 6,469.08.
The peso briefly touched the 59-mark.
The broader All Shares index fell 10.21 points or 0.28 percent to 3,700.
The latest US Fed rate policy is due out Thursday morning (Manila time)
Market observers expect another 25-basis point cut, its third for the year.
The BSP’s Monetary Board is expected to make another cut in its meeting late Thursday.
In Wednesday’s trade, losers edged gainers 104 to 83, with 61 stocks unchanged. Trading volume reached P5.96 billion.
Luis Limlingan, managing director at Regina Capital and Development Corp., said the market is tracking regional sentiment.
The peso closed at 58.99 to the dollar, easing from 58.871 on Tuesday.
The currency opened at 58.89 before hitting a high of 58.88 and a low of 59.
Trading turnover reached $884.55 million.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the continued drop of the stock market can be largely attributed to the “Trump factor,” in which investors expect the incoming US president to institute “protectionist policies/measures that could lead to higher US inflation, fewer Fed rate cuts, slower global trade and overall GDP growth.”
Most actively traded International Container Terminal Services Inc. was up P3.60 at P389. BDO Unibank Inc. lost P6 to close at P143. Bank of the Philippine Islands slipped P2.50 to P126. SM Prime Holdings Inc. was down P0.80 at P25.10. Metropolitan Bank and Trust Co. gained P1.20 to P75. Ayala Land Inc. edged P0.25 higher to P25.95. PH Resorts Group Holdings Inc. inched up P0.03 to settle at P0.59.
