PHILIPPINE SHARES snapped their five-day winning run on Thursday after the Bangko Sentral ng Pilipinas (BSP) announced a surprise jumbo rate hike to contain spiraling consumer prices, with the peso’s woes adding to concerns.
The Philippine Stock Exchange index (PSEi) dropped by 0.72% or 41.78 points to close at 5,779.73, while the broader all shares index slumped by 0.54% or 17.65 points to 3,220.96.
“The local bourse ended lower as investors reacted to the Bangko Sentral ng Pilipinas’ 50 basis points (bps) rate hike, reflecting the central bank’s cautious stance amid persistent inflationary pressures. The move heightened concerns over borrowing costs and its potential impact on economic activity, while continued peso depreciation added to market uncertainties,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
The Philippine central bank on Thursday hiked benchmark rates by 50 bps, a move predicted by only two out of the 22 analysts in a BusinessWorld poll that had the other 20 economists pencilling in a smaller 25-bp increase.
This was the first 50-bp hike in nearly four years or since February 2023 and marked its fourth straight tightening move this year, bringing cumulative increases since April to 125 bps.
The BSP said the “decisive” policy move was necessary to address broadening price pressures and keep inflation expectations anchored amid further upside risks, especially with expectations of strong El Niño conditions over the coming months.
Meanwhile, the peso slid by 15.9 centavos to close at P63.52 on Thursday, finishing at a historic low for the fourth time this week. It also logged a new intraday trough of P63.545.
COL Financial Group, Inc. Research Analyst Denise Joaquin said in a Viber message that profit taking also contributed to the market’s decline. “Sentiment was also weighed down by a cautious start to the third-quarter earnings season, with BPI (Bank of the Philippine Islands) reporting weaker headline earnings.”
BPI posted a net income of P48.9 billion for the first nine months of 2026, it reported on Thursday. Its shares dropped by P1.35 or 1.37% to close at P97 apiece.
Majority of sectoral indices closed in the red. Services slid by 0.83% or 25.32 points to 3,016.44; industrial sank by 0.78% or 58.13 points to 7,405.13; financials dropped by 0.66% or 12.04 points to 1,799.02; property fell by 0.51% or 9.43 points to 1,831.45; and holding firms retreated by 0.44% or 19.31 points to 4,325.25.
Meanwhile, mining and oil went up by 0.16% or 30.29 points to 18,962.36.
Decliners outnumbered advancers, 108 to 64, while 62 names were unchanged.
Value turnover rose to P8.21 billion on Thursday with 1.28 billion shares traded from the P7.05 billion with 986.59 million shares that changed hands on Wednesday.
Net foreign buying jumped to P1.2 billion from P503.33 million the previous session. — Alexandria Grace C. Magno