Investors face another tense week ahead of BSP meet
Investors would remain in wait-and-see mode this week after the local bourse took a hit from trade policies and monetary policy moves in the United States.
Wendy Estacio-Cruz, research head at Unicapital Securities Inc., said in a text message the stock market was looking toward the next rate-setting meeting of the Bangko Sentral ng Pilipinas (BSP) scheduled on April 3.
Traders would likely move depending on rate cut projections, Cruz said.
“We expect the BSP to keep interest rates steady for now while monitoring the inflation trend,” she added. March inflation is set to be released the following day, April 4.
Last week, the benchmark Philippine Stock Exchange Index (PSEi) mainly moved along the 6,200 and 6,300 range as United States President Donald Trump’s changing trade policies triggered anxiety among investors.
US recession fears
At the same time, the Federal Reserve decided to keep its monetary policy unchanged at 4.5 percent. While the American central bank reaffirmed its stance that it would cut rates twice this year, the pause created some tension in global markets, with traders fearing recession in the US.
The PSEi closed on Friday at 6,266.75, down by 0.43 percent week-on-week.
With these global and local factors coming into play, Cruz expects the PSEi to stay between 6,000 and 6,300 this week.
