PSEi to watch BSP, trade moves
Upcoming economic data and the Bangko Sentral ng Pilipinas’ (BSP) next monetary policy stance will dictate the local bourse’s movement this week, although tariff tensions will remain in the shadows.
Japhet Tantiangco, research head at Philstocks Financial Inc., said the index’s optimistic path would have the BSP’s possibly “aggressive policy easing” at the center.
So far, the central bank has cut the benchmark rate for overnight borrowing by 25 basis points to 5.5 percent.
Analysts are expecting the Monetary Board to slash rates by another 25 bps during its meeting on Thursday following cooler May inflation.
At the same time, traders will also take a look at April cash remittances data that will be released on Tuesday as a gauge of economic strength, said Unicapital Securities Inc. research head Wendy Estacio-Cruz.
“We expect the index to trade within the 6,300 to 6,500 range,” Cruz added.
This comes after the benchmark Philippine Stock Exchange Index (PSEi) ended last week higher by 0.29 percent to 6,395.59, snapping its two-week losing streak.
The PSEi’s movement was largely influenced by the tariff negotiation meetings between Washington and Beijing, which earlier retaliated after US President Donald Trump announced his “Liberation Day” tariffs. Analysts are hopeful that this will ultimately result in favorable conditions for investors.
As such, any negative development will be the index’s main obstacle this week, according to Tantiangco.
“Sentiment remains bearish, however, due to the lingering global trade uncertainties caused by the US’ trade policies,” he said.
