The Philippine Stock Exchange Index (PSEi) declined by 2.10 percent on Wednesday, shedding 130.94 points to close at 6,114.81, as investors booked profits on International Container Terminal Services Inc. (ICTSI) and remained cautious ahead of the Bangko Sentral ng Pilipinas' (BSP) policy meeting.
Ron Acoba, chief investment strategist at Trading Edge Consultancy, attributed the drop to profit-taking after a sharp one-day rally earlier in the week, combined with market uncertainty surrounding monetary policy decisions from both the BSP and the US Federal Reserve.
Brokerage Philstocks Financial Inc. noted that ICTSI was the biggest drag on the index, with profit-taking in the stock significantly contributing to the market's decline. Investors are bracing for a possible 25-basis-point rate hike from the BSP, which adds to the cautious sentiment.
Despite the downturn, trading activity remained robust, with net value turnover reaching P7.41 billion. Foreign investors turned net sellers, recording net outflows of P127.54 million.
Sector performance was mostly negative, with only the banking index posting gains of 1.37 percent. The services sector suffered the steepest decline, falling 4.59 percent. Among blue-chip stocks, Globe Telecom Inc. led gainers, rising 5.05 percent to P1,809 per share.
The pullback follows a recent rally that had pushed the PSEi to its highest level in over three months. Analysts said investors are closely watching the BSP's rate decision for clues on the economic outlook, as higher borrowing costs could curb corporate expansion and consumer spending.