Investors bank on fresh rate cut to spur PSEi
The Philippine Stock Exchange index (PSEi), which just suffered a four-day losing streak, may find some reprieve this week as investors hunt for bargains ahead of the Monetary Board meeting.
Philstocks Financial Inc. senior analyst Japhet Tantiangco, in a statement over the weekend, said the market might enter the 7,400 to 7,500 range again after dropping to the 7,300 level last week.
On Friday, the benchmark PSEi dipped by 1.36 percent, or 101.15 points, to end at 7,310.32 while the broader All-Shares slipped by 0.55 percent, or 22.36 points, to settle at 4,015.16.
“With last week’s decline, we may see some bargain hunting [this] week,” Tantiangco said.
The upcoming monetary policy briefing of the Bangko Sentral ng Pilipinas (BSP) on Wednesday, Oct. 16, could be a primary catalyst for the market.
The analyst said a rate cut would give the market the impetus to register some gains.
“Investors are also expected to watch out for clues on the BSP’s policy outlook. If hints of more policy easing would be given, then it is expected to spur optimism amongst investors,” he added.
In August, the BSP slashed interest rates by 25 basis points (bps) to 6.25 percent, the first cut in almost four years. Analysts polled by the Inquirer believe another 25-bp cut is in the offing.
Tantiangco, however, warned that the weakening peso might again weigh on investor sentiment. The local currency slipped to P57.205 on Friday after suffering from its worst finish in nearly two months. –WITH REPORTS FROM IAN NICOLAS P. CIGARAL
