The Philippine Stock Exchange Index (PSEi) extended losses on Friday as investors weighed the Bangko Sentral ng Pilipinas’ latest interest rate hike alongside rising inflation expectations.
The benchmark index fell 0.67 percent or 40.32 points to close at 5,943.49, reflecting continued selling pressure across the market.
Market sentiment was weighed down after the BSP raised policy rates by 25 basis points, prompting investors to reassess risks amid tighter financial conditions, analysts said.
They added that inflation expectations remained elevated, with the central bank projecting average inflation at 6.3 percent for the year.
Trading activity stayed subdued, with net value turnover reaching P5.23 billion, indicating cautious participation from investors.
Foreign investors remained net sellers, posting outflows of P628.11 million as both local and global uncertainties continued to dampen appetite.
Sector performance was broadly negative, although industrial stocks managed a slight gain of 0.1 percent against the overall decline.
Banks led the losses, falling 1.63 percent on concerns over higher borrowing costs and weaker loan demand, while Monde Nissin Corp. was among the few gainers, rising to P6.68 as Bank of the Philippine Islands slipped to P92.10.