THE stock market plunged on Wednesday, with investors said to have engaged in profit-taking on heavyweight issues while awaiting today’s Bangko Sentral ng Pilipinas (BSP) policy decision.
The Philippine Stock Exchange index (PSEi) fell 2.10 percent, or 131.15 points, to 6,114.81 as selling pressure on index heavyweight International Container Terminal Services Inc. dragged the market lower.
The peso, meanwhile, weakened by 7.3 centavos to P60.393 versus the dollar, a result Rizal Commercial Banking Corp. chief economist Michael Ricafort said was due to the greenback’s having gained against major global currencies.
Stock market trading activity remained firm with total value turnover at P7.41 billion. Foreign investors turned net sellers, however, posting outflows of P127.54 million.
Philstocks Financial Inc. research manager Japhet Tantiangco said the pullback was largely driven by profit-taking, particularly on ICTSI, which also led the index losses.
“Investors also remained cautious ahead of the BSP policy meeting, with markets pricing in at least a 25-basis-point rate hike,” he added.
Luis Limlingan, head of sales at Regina Capital Development Corp., said sentiment was shaped by positioning ahead of today’s likely BSP rate hike.
“The local market extended its profit-taking phase as participants reduced exposure ahead of the BSP decision,” Limlingan said.
“Investors are waiting for clearer guidance on the central bank’s policy direction before taking larger positions.”
Sectoral performance was broadly negative, with services falling the most by 4.59 percent. Financials managed to post a gain of 1.37 percent.
Globe Telecom Inc. was the top index gainer, rising 5.05 percent to P1,809.00.
Market breadth was negative, with decliners outnumbering gainers, 90 to 72.
