Filipino shares can get a lift from the bargain hunt this week, although careful sentiment can prevail as players are looking for new catalysts.
On Friday, the Philippine Stock Exchange Index (PSEI) withdrew with 0.84% or 51.86 points to close to 6,061.33, while the wider all -index decreased by 0.5% or 18.45 points to to end at 3,629.28.
Week in week, the PSEI fell by 1.52% or 93.66 points of the 6,154.99 finish on 7 February.
“Sessions are moved within a tight reach [last] Week after the Sentral NG Pilipinas (BSP) Surprise movement of Bangko NG Pilipinas to keep its most important speed stable, “said Online Brokerage 2tradasia.com in a note.
“The local market did not succeed last week to retain its momentum as new tariff threats and failed hope for a BSP rate reduction weighed on sentiment. Last week’s trade also shows that the market still has a hard time reaching the exponential advancing average of 10 days, “said senior research analyst in Philstocks Financial, Inc. Japhet Louis O. Tantiangco in a vugar message.
The monetary administration unexpectedly kept the benchmark interest rates stable on Thursday because worldwide uncertainties threaten the prospects for inflation and growth.
This marks the first break of the BSP after three consecutive 25-based point (BP) cutbacks since it started its relaxation cycle in August 2024. The decision took the market surprised as 19 of the 20 analysts who were interviewed by Business world Had a fourth consecutive 25-BP cutbacks in the meeting on Thursday, and only one analyst expected that the BSP would keep the rates stable.
This week Mr. Tantiangco said that the market can recover when the hunt for bargains.
“The local market remains undervalued. That is why we can see episodes of bargain yacht this week. However, we do not yet see a strong catalyst who could continue the market to organize an important meeting. Investors are expected to keep a cautious attitude while waiting for new leads, “he said.
“The last tariff movements of US President Donald J. Trump and the BSP decision to keep the policy rates unchanged can also continue to weigh on sentiment,” Mr Tantiangco added. He placed the support of the PSEI at 6,000 and resistance at 6,400.
Mr. Trump kept his drumbeat of tariff threats alive on Friday and said that taxes would come on cars as soon as 2 April, the day after members of his cabinet have to deliver reports with the sketching of options for a series of import duties as he tries to reform worldwide trade , Reuters reported.
It was the last one in a litany of commercial actions that Mr. Trump has unveiled since he was in place for the second time on January 20.
For his part, 2tradeasia.com has the immediate support of the PSEI at 6,000 and resistance at 6,300-6,400.
“Tensions abroad and uncertainties in trade and monetary policy cast a very long shadow over markets this can continue to exist in the medium term and strategies must take into account weak capital flows and the appetite for risk,” said the online brokerage. – Revin Mikhael D. Ochave of Reuters