Share prices closed lower while the peso ended up Wednesday as investors digested the latest developments on central banks’ policy rate directions.
The Philippine Stock Exchange index was down 67.31 points to 6,489.35, a 1.03 percent drop.
The broader All Shares index was down 28.2 points or 0.8 percent to 3,510.04.
Losers edged gainers 111 to 62 with 62 stocks unchanged. Trading turnover reached P6.22 billion.
The peso closed at 58.32 to the dollar, up from 58.44 on Tuesday.
The currency opened at 58.48 and hit a high of 58.30 and a low of 58.50. Trading turnover reached $1.16 billion.
Investors digested comments from US Federal Reserve Chair Jerome Powell, who provided no fresh clues on the timing of a highly expected rate cut, Reuters reported.
Powell said during the first day of his two-day congressional testimony that more good data would strengthen the case for rate cuts, adding that he was not sending a signal on the timing, boosting the dollar.
Recent inflation prints in other Asian economies including the Philippines and Thailand showed an easing trend, giving some leeway to central banks to think of cutting rates.
The Bangko Sentral ng Pilipinas (BSP) said it has more scope to cut interest rates at its next meeting in August after annual inflation slowed in June.
Rate decisions from South Korea and Malaysia are due on Thursday. Both the Bank of Korea and the Bank Negara Malaysia are expected to keep their key policy rates on hold, according to Reuters polls.
Luis Limlingan, managing director at Regina Capital and Development Corp., said the market continued to digest the dovish comments from BSP Governor Eli Remolona Jr., who highlighted the risks of delaying interest rate cuts to the economy.
Most actively traded Ayala Land Inc. was down P0.35 to P29.05. Universal Robina Corp. was steady at P115.50. Jollibee Foods Corp. was down P8.80 to P222. BDO Unibank Inc. was up P0.10 to P141. Metropolitan Bank and Trust Co. was down P0.30 to P65.35. SM Investments Corp. was down P1.50 to P846.50. SM Prime Holdings Inc. was down P0.40 to P28.40. International Container Terminal Services Inc. was down P3.60 to P356.40. Bank of the Philippine Islands was down P1.50 to P121.50. JG Summit Holdings Inc. was down P1.10 to P26.30.
