The PSEi weakened after the US Federal Reserve announced an expected rate cut which prompted investors to sell rate-sensitive stocks.
The main index dropped 49.57 points or 0.70 percent to close at 6,986.19, weighed down by Conglomerates and Property firms while more sectors advanced. Volume remained above average at 1.29 billion shares worth P8.93 billion as gainers beat losers 114 to 67 with 56 unchanged.
“Philippine shares reverted to selling on news after the Fed's interest rate hike adjustment. Without deviating from the script, the central bank bumped the interest rate by 25bps, bolstering investor optimism that inflation is cooling enough,” said Regina Capital Development Corporation Managing Director Luis Limlingan.
He added that, “However, the Fed gave no indication of an upcoming pause in rate hikes.”
Philstocks Financial Research Manager Japhet Tantiangco said “The local bourse pulled back this Thursday on the back of profit taking. Investors booked gains from the market’s steep rally yesterday.“