Risk aversion compelled market players to book profits ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting this week, while the US trade war added to the market’s risk-off stance.
The awaited BSP interest rate decision on February 13 “takes center stage,” Luis Limlingan, managing director of Regina Capital and Development Corp., said.
Investors were also positioning for the upcoming economic data, such as the December remittance numbers due out on February 14, Limlingan added.
The bellwether PSEi lost 117.87 points or 1.92 percent to close at 6,037.12. The broader All Shares declined by 46.37 points or 1.27 percent at 3,617.27.
Decliners led advancers 111 to 78 with 44 stocks unchanged. Trading value reached P5.69 billion.
Investors also went for profit taking ahead of the MSCI’s manufacturing data on Feb. 11, he said.
Michael Ricafort, chief economist at RCBC, described the PSEi’s fall as a “healthy profit-taking.”
The market also went into correction mode, prompted by the risk-off sentiment from the political noise, particularly the impeachment proceedings against Vice President (Sara) Duterte by the House of Representatives,” the economist said.
Ricafort said investors were keenly watching if the move to impeach Duterte could “potentially distract lawmakers, upon resumption of (congressional) sessions after the May 2025 midterm elections, from passing reform and other priority measures that require legislation, moving forward.”
Meanwhile, trader Seth Pangan of Diversified Securities Inc. said the market decline on Monday was “mainly attributed to the trade tensions from the new rounds of US tariffs and the impeachment (move against) the vice president.”
Most actively traded BDO Unibank Inc. shed P3.10 to close at P135.60. International Container Terminal Services Inc. lost P9.60 to P348.60. Bank of the Philippine Islands depreciated P2.60 to P128.70. Metropolitan Bank and Trust Co. declined P3.20 to P69.80. Ayala Land Inc. dropped P0.50 to P24.50. China Banking Corp. lost P2.70 to P84.60. SM Investments Corp. shed P10.50 to P793. Ayala Corp. dropped P17.50 to P555. SM Prime Holdings Inc. fell P1.05 to P24.60. DigiPlus Interactive Corp. eased P1 to P32.
