PSEi falls to lowest in one year as BSP delivers rate hike

MANILA, Philippines — Stocks slipped below the 6,000 mark yesterday to their lowest level in a year, bucking the uptrend in other Asian markets, as the Bangko Sentral ng Pilipinas delivered an off-cycle rate hike to further stave off inflation, with analysts penciling in another increase before the year ends.

The 30-company benchmark Philippine Stock Exchange index (PSEi) closed at 5,961.99, down by 56.50 points or 0.94 percent, while the broader All Shares index slipped to 3,246.47, down by 19.55 points or 0.60 percent.

Total value turnover was thin at P3.8 billion. Market breadth was negative, 93 to 78, while 53 issues were unchanged.

Elsewhere in Asia, markets rose after strong earnings from two tech titans provided hope for a bounce on Wall Street, while traders were also steeling themselves for key US inflation data.

The gains come at the end of a rollercoaster week for equities, but the Middle East crisis continued to cast a shadow as Israel said ground forces had raided central Gaza for a second day.

And while figures showed the US economy enjoyed its best growth since late 2021 during the third quarter, observers said there was a belief it had peaked and the new year would see a slowdown.

However, questions remain over how long the Federal Reserve will keep interest rates at elevated levels.

All three main indexes sank Thursday, with the Nasdaq again the worst performer owing to tech firms’ susceptibility to higher borrowing costs.

But blockbuster earnings from Amazon and Intel after the markets closed – and a surge in after-hours trade – provided Asian traders with hope for a bounce in New York at the end of the week.

Eyes now turn to the release later on Friday of the personal consumption expenditures (PCE) price index, which is the Fed’s preferred measure of inflation. A slight easing of the core reading – released Thursday – provided some optimism. 

The reading comes ahead of the bank’s policy decision next week, and while expectations are for it to pause, traders are hoping for guidance for the next few months.