PHL stocks fall on surprise BSP cut, profit taking

PHILIPPINE STOCKS dropped anew on Thursday on profit taking after the market’s two-day climb and as the central bank delivered a surprise rate cut, noting that the economic outlook has softened as the ongoing corruption scandal has affected business sentiment.

- A.G.C. Magno

The benchmark Philippine Stock Exchange index (PSE) fell 0.67% or 41.34 points to close at 6,057.40, while the broader all shares index dropped 0.47% or 17.64 points to 3,667.01.

“The local market declined as investors took profits following a two-day rally. The peso’s depreciation also weighed on the local bourse. For the most part of the day, investors traded cautiously while waiting for the BSP’s (Bangko Sentral ng Pilipinas) policy decision,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

“The market tracked lower after the peso breached P58 following the BSP’s surprise move to cut rates by another 25 bps (basis points) to support the domestic economy,” AP Securities, Inc. said in a market note.