Local shares retreated on Wednesday as investors monitored escalating tensions between Israel and Iran, and awaited key decisions from the Bangko Sentral ng Pilipinas (BSP). The peso also weakened against the US dollar.
The Philippine Stock Exchange index (PSEi) dropped by 0.50 percent to close at 6,337.43, while the broader All Shares index slipped by 0.29 percent to 3,772.79.
“Philippine equities declined as the conflict between Israel and Iran entered its fifth day and as retail sales fell more than expected, stirring worries over consumer spending,” said Luis Limlingan, head of sales at Regina Capital Development Corp.
Limlingan added that although the US Federal Reserve is expected to keep interest rates unchanged, the recent soft economic data could prompt a more dovish outlook.
“Locally, investors stayed on the sidelines ahead of the BSP’s monetary policy decision, with many anticipating a potential rate cut to counter global uncertainties, particularly fears of further escalation in the Middle East,” he noted.
All sectoral indices closed lower except for the Industrial sector, which rose by 0.45 percent.
Market breadth was nearly balanced, with 96 gainers against 95 losers, while 52 stocks remained unchanged.
On the currency front, the peso closed weaker at 56.98 against the US dollar, compared to Tuesday’s 56.70 finish. It opened at 56.75 and traded within the range of 56.70 to 56.98, with a weighted average of 56.84.
Trading volume increased slightly, reaching $1.27 billion from $1.20 billion the previous session.
