Intact econ team inspires confidence
Better domestic prospects and the United States’ increasing debt may tip investors’ scales this week and influence the movement of the local bourse.
Japhet Tantiangco, research head at Philstocks Financial Inc., said over the weekend traders would likely digest President Marcos’ decision to keep his economic team untouched after last week’s Cabinet revamp.
According to Tantiangco, this may “ease concerns over the uncertainties of the Philippines’ economic policies.”
Last Friday, the main share Philippine Stock Exchange Index (PSEi) snapped its five-week winning streak after closing lower by 0.81 percent week-on-week to 6,413.10.
This was due mostly to uncertainties abroad, coupled with Mr. Marcos’ call for the courtesy resignations of his Cabinet secretaries.
Possible rate cuts
Tantiangco also said the Bangko Sentral ng Pilipinas’ hint at two more possible rate cuts this year could strengthen market confidence.
At the same time, however, concerns over the United States’ fiscal position could weigh on the bourse due to “risks of increasing debt.”
This comes after Moody’s cut its credit rating for the United States for the first time in history, citing the country’s ballooning debt.
Should the scales tip in favor of domestic optimism, Tantiangco sees the PSEi moving toward the 6,600 level this week.
