1 month ago
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Richmond Mercurio - The Philippine Star
February 10, 2025 | 12:00am
First Metro Investment Corp. head of research Cristina Ulang, for the part, sees the market being jittery again ahead of the BSP policy meet, worried about a pause.
Photo from BusinessWorld
MANILA, Philippines — Expect sideways trading to persist in the local market this week as investors keep an eye on the upcoming policy rate decision and outlook of the Bangko Sentral ng Pilipinas (BSP).
Despite closing in the red last Friday at 6,154.99, the benchmark Philippine Stock Exchange index (PSEi) recovered week on week, increasing by 4.99 percent.
“The PSEi fell anew due to profit taking after failing to clear the 6,300 levels. This clearly supports that the rally from the 5,862.59 low is a mere technical bounce,” Reyes Tacandong & Co. senior adviser Jonathan Ravelas said.
He said that further sideways trading is seen continuing between 5,800 to 6,300 levels in the near-term.
First Metro Investment Corp. head of research Cristina Ulang, for the part, sees the market being jittery again ahead of the BSP policy meet, worried about a pause.
However, she said a rate cut coming through would be much welcome and would improve sentiment, igniting a recovery.
“We believe investors are now watching out for the BSP’s first Monetary Board meeting on Feb. 13, wherein we expect the board to leave interest rates steady,” Unicapital head of research Wendy Estacio-Cruz said.
She noted that the US Federal Reserve decided to maintain its policy rates last January.
Sun Life Investment Management and Trust Corp. president Michael Enriquez, meanwhile, said a 25–basis–point cut in policy rates is expected in this week’s Monetary Board meeting.
