The Philippine Stock Exchange (PSE) fell for the second straight day, shedding 34.62 points or 0.56 percent, to close at 6,155.57 as investor sentiment remained bearish a week into the “ghost month” despite the Bangko Sentral ng Pilipinas’ (BSP) rate cut.

The Property sector led the retreat, while gains in the Mining and Banking sectors tempered the losses. Trading volume dipped to 1.63 billion shares valued at P6.79 billion, with losers outnumbering gainers 113 to 89, and 57 unchanged.

“The PSEi fell as the market continues its bearish trend as investors appear to have already priced in the BSP’s rate cut, which was widely anticipated,” said Luis Limlingan, managing director at Regina Capital Development Corp. “Despite the policy easing, sentiment remains cautious as selling pressure persists, suggesting that investors are probably waiting for stronger catalysts before taking on additional risk.”

Rizal Commercial Banking Corp. Chief Economist Michael Ricafort noted the index’s decline came despite the widely expected BSP rate cut to 5.00 percent.

He cited BSP Governor Eli Remolona Jr.’s less dovish signals on a possible single 0.25 percent rate cut for the rest of 2025.

This, he explained, “could be near the end of the monetary policy cycle wherein a nominal interest rate of four percent is a bit low and could reduce incentives for banks to place funds with the BSP.”