Filipino shares can get a lift of the striker hunt this week after it had fallen in Bear Market territory on Friday, whereby the market is also awaiting the release of January.
On Friday, the Philippine Stock Exchange Index (PSEI) fell by 4.01% or 245.07 points to 5,862.59, while the wider All all all -all -index withdrew by 2.19% or 79 points to 3,520.32.
This marked the worst closure of the benchmark in 27 months or since the 5,853.63 finish on October 12, 2022. This also placed the PSEI in Bears area, because this represents a decrease of more than 20% compared to the latest registered peaks, which The 7,604.61 Intraday are high and the 7,554.68 close on October 7, 2024.
Week in week, the PSEI fell by 6.89% or 433.61 points of its 6,296.20 finish on January 24, which marked the fourth consecutive weekly decline.
“For the first time since 2022, the PSEI broke the gross domestic product (GDP) under 6000 under 6000 a market memorandum.
The Filipino GDP expanded by 5.6% in 2024, which falls short of the goal of 6.5% of the government, but slightly faster than 5.5% in 2023, the Local Statistics Agency reported Thursday.
In the meantime, the US Central Bank kept its target interest on the reach of 4.25% -4.5% at the end of his two -day meeting on Wednesday, with FED chairman Jerome H. Powell Signaling caution for further policy improvement.
“With four consecutive weeks of decline, we expect the hunt for bargains to follow. However, we may not yet see a complete change, because it can remain sentiment bearish, ”said senior research analyst in Philstocks Financial, Inc. Japhet Louis O. Tantiangco in a Viber message.
“Investors can still worry about how the Filipino economy would be this 2025 after the target performance below last year, and how the BSP (Bangko Sentral NG Pilipinas) can help in view of the fact that the FED slows down with its policy improvement. Adding the worries is the uncertainties in the foreign policy of the US, “he added.
This year, the Filipino Central Bank can gradually lower 50 basic points (BPS) as “policy insurance” to risks, said BSP governor Eli M. Remolona, Jr. On Saturday.
Mr Remolona said that the reductions in steps of 25 BPS each could each be implemented in the first and second half of the year.
He also said on Friday that a rate reduction is “on the table” during their policy meeting of 13 February, with economic growth “a bit under capacity”.
“If the [output] The gap becomes bigger, if it gets more negative, then it would relax more, “said Mr. Remolona.
The monetary administration has given the costs for benchmark loan costs with 75 bps since he kicked off his relaxation cycle in August last year, so that the policy percentage is brought to 5.75%.
Mr. Tantiangco placed the trade range of the PSEI for this week between 5,700 and 6,000.
For his part, 2tradeasia.com placed the support of the PSEI at 5,800 and resistance to 6,000. – Revin Mikhael D. Ochave