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Richmond Mercurio - The Philippine Star
April 7, 2025 | 12:00am
The benchmark Philippine Stock Exchange index (PSEi) finished lower at 6,084.19 last Friday, down by 1.03 percent week-on-week, after the US announced its reciprocal tariffs which are seen to have a negative effect on the global economy.
STAR / File
MANILA, Philippines — Market sentiment is expected to remain bearish this week amid global economic concerns due to the recently unveiled tariff policies of the US.
The benchmark Philippine Stock Exchange index (PSEi) finished lower at 6,084.19 last Friday, down by 1.03 percent week-on-week, after the US announced its reciprocal tariffs which are seen to have a negative effect on the global economy.
Reyes Tacandong & Co. senior adviser Jonathan Ravelas said the PSEi fell further last week after US President Donald Trump unveiled harsher-than-expected tariffs against US trading partners, jolting the markets as investors sought safety in safe haven assets.
“Continue to expect sideways to down between 5,800 and 6,300 levels in the near-term,” Ravelas said.
First Metro Investment Corp. head of research Cristina Ulang said that tariff uncertainties coupled with a guessing game on Bangko Sentral ng Pilipinas (BSP) policy response may make for directionless volatile trading this week.
“We anticipate the index to continue trading within the 5,800 to 6,300 range, as the impact of tariffs imposed by the US government has yet to be fully felt. Investors are closely monitoring the BSP’s upcoming monetary policy meeting on April 10,” Unicapital Securities head of research Wendy Estacio-Cruz said.
For Philstocks Financial research manager Japhet Tantiangco, however, the market is drawn to more attractive levels from a fundamental standpoint after four straight weeks of decline.
As such, Tantiangco said that bargain hunting may be seen in this week’s trading.
“Expectations that the BSP will cut policy rates in their upcoming meeting following the further decline in inflation last March may give sentiment a boost,” he said.
March inflation settled at 1.8 percent, better than the consensus estimate of two percent and within the BSP forecast range of 1.7 to 2.5 percent.
“However, the global economic concerns amid the US’ tariff policies are still expected to weigh on the market, tempering the potential rise. Shocks in the form of new tariff announcements from the US pose downside risks that may pull the market lower,” Tantiangco said.
