PSEi declines on profit taking before BSP review

LOCAL STOCKS declined on Wednesday as investors pocketed gains from the market’s rise earlier this week ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting.

The Philippine Stock Exchange index (PSEi) went down by 26.85 points or 0.41% to close at 6,392.09 on Wednesday, while the broader all shares index declined by 3.28 points or 0.09% to 3,376.30.

“The market took a breather after its three-day rally as investors took profit ahead of the BSP’s meeting tomorrow,” AP Securities, Inc. Equity Research Analyst Carlos Angelo O. Temporal said in a Viber message on Wednesday.

“The local bourse declined amid profit taking after three straight days of the market rally, while waiting for the BSP meeting tomorrow. At the BSP meeting, aside from the anticipated interest rate hike, we think that investors will be waiting for the outlook of the central bank toward the inflation rate at least for the end of the year,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message on Wednesday.

The Monetary Board is set to increase benchmark interest rates by 75 basis points (bps) at its meeting on Thursday as the central bank seeks to rein in rising inflation and support the currency.

The BSP has raised borrowing rates by 225 bps since May.

Meanwhile, Ms. Alviar said geopolitical tensions between Russia and North Atlantic Treaty Organization (NATO) also weighed on the local market.

Reuters reported that Poland is likely to request consultations under NATO’s Article 4 after a missile, reportedly Russian-made, struck Polish territory near the border with Ukraine, and raise the issue at a United Nations Security Council meeting on Wednesday, officials said.

Two people were killed in an explosion in a village 6 kilometers (3.5 miles) from the border, with Polish President Andrzej Duda saying that Poland had no conclusive evidence showing who fired the missile.

Back home, sectoral indices were split. Mining and oil rose by 93.42 points or 0.95% to 9,849.78; services went up by 13.25 points or 0.81% to 1,649.54; and property gained 9.71 points or 0.34% to end at 2,809.43.

Meanwhile, financials declined by 21.10 points or 1.29% to 1,605.48; holding firms went down by 58.03 points or 0.94% to 6,095.83; and industrials lost 28.58 points or 0.3% to close at 9,329.44.

Value turnover climbed to P7.23 billion on Wednesday with 968.99 million shares changing hands from the P5.13 billion with 725.68 million issues traded on Tuesday.

Net foreign buying surged to P1.09 billion on Wednesday from P522.90 million on Tuesday.

Advancers outnumbered decliners, 92 versus 82, while 49 names closed unchanged.

AP Securities’ Mr. Temporal placed the PSEi’s immediate support at 6,200 and resistance at 6,500. — A.E.O. Jose with Reuters

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

Your daily news source covering investing ideas, market stocks, business, retirement tips from Wall St. to Silicon Valley.

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 TheProficientInvestor. All Rights Reserved.

To Top