Philippine shares closed lower on Thursday as traders liquidated positions upon confirmation of the central bank’s expected 25 basis-point rate cut, before caution set in again against lingering pressure on equity prices.
“Investors are still digesting the latest rate cut, especially on its implications for equities, given that yields continue to decline while the inflation outlook remains,” Luis Limlingan, managing director at Regina Capital and Development Corp., said.
April Tan, head of research at Colfinancial.com, added that investors have started looking ahead. “Markets are now expecting another cut later this year, given the US Fed turning dovish in its own policy thrust,” she said.
Tan also noted that “at least the peso will not be pressured to depreciate with the narrowing interest rate differential,” offering some reassurance amid cautious trading.
The Philippine Stock Exchange index (PSEi) slipped 1.33 percent or 83.15 points to close at 6,190.19, while the broader All Shares eased 0.75 percent or 28 points to 3,703.07.
Gainers and losers were even at 99, with 48 stocks unchanged.
Trade value reached P7 billion over 76,776 transactions covering 953.32 million shares.
Foreign funds were net sellers of P769.81 million worth of shares, with buying at P3.33 billion and selling at P4.1 billion.
Bank shares, particularly the top listed lenders, were among the biggest losers of the day, with the financial sub-index dropping 2.41 percent or 51.21 points to 2,073.60.
Jean de Castro, head of fixed income at Manulife Investment Management, said some investors may shift to the bond market.
“Longer-dated peso-denominated bonds could be attractive at this stage, but it is important to closely monitor global challenges such as tariffs and geopolitical tensions,” she said.
