The Philippine stock market is expected to get a boost from the Bangko Sentral ng Pilipinas’ recent 25-basis-point rate cut. — BW FILE PHOTO

PHILIPPINE SHARES may move sideways as the market waits for fresh leads, with bets of further monetary easing here and abroad to lift sentiment.

On Friday, the bellwether Philippine Stock Exchange index (PSEi) fell by 0.89% or 56.38 points to end at 6,266.75, while the broader all shares index dropped by 0.48% or 18.20 points to close at 3,727.12.

Week on week, the PSEi dropped by 0.43% or 27.36 points from the 6,294.11 finish on March 14.

“The local bellwether index held steady at its trading range, primarily pushed-and-pulled by interest rate-related headlines,” online brokerage firm 2TradeAsia.com said in a market note.

The US Federal Reserve last week left rates unchanged as expected, but maintained its projection for two quarter-percentage-point rate cuts by the year-end, even as Fed Chair Jerome H. Powell reiterated their cautious stance amid uncertainties stemming from the Trump administration’s policies.

Meanwhile, Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. told Bloomberg News last week that the Monetary Board could cut rates at their April 10 policy meeting following the surprise pause at their February review, especially if March inflation turns out better than expected.

Mr. Remolona added that the BSP could deliver 50 basis points (bps) in cuts this year, with 75 bps in reductions likely if economic growth weakens further.

For this week, First Metro Investment Corp. Head of Research Cristina S. Ulang said Philippine shares could be range-bound as investors look for new leads.

“We see the market moving sideways to upward on hopes for another inflation beat in March, raising odds of a 25-bp rate cut next month,” Ms. Ulang said in a Viber message.

“We caution that preemptive pricing regarding April cut can be immature as interim data can still alter the BSP’s stance. Additionally, an early cut will put parity pressure on the peso… Circumstances remain extremely fluid, and extra vigilance is warranted given event risks in early-mid April,” 2TradeAsia.com said.

Investors will continue to monitor comments from Fed and BSP officials on the direction of interest rates moving forward, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The market will also watch out for further policy pronouncements from US President Donald J. Trump, Mr. Ricafort said. He placed the PSEi’s support at 6,000 and minor resistance at 6,275-6,530.

Mr. Trump last week hinted there would be some flexibility regarding tariffs ahead of the reciprocal duties he is expected to impose early next month, Reuters reported.

2TradeAsia.com put the PSEi’s support at 6,000 and resistance at 6,400.

“Increased risk management is key as the market approaches mid-year, knowing rate cuts are mostly backloaded into second half of 2025. Interest rate policy decisions here and abroad are to take center stage…” — R.M.D. Ochave with Reuters