Filipino shares can improve this week, because the market sentiment is expected to get a lift from the removal of the country from Dirty Money Watchdog Financial Action Task Force’s (FATF) “Gray List” and after the Central Bank said it is the reserve requirement of Banks would lower (Rrrrrrrr -Ratios of Banks (Rrrrrrrrr.) Next month.
On Friday, the Benchmark Philippine Stock Exchange Index (PSEI) climbed with 0.51% or 31.41 points to close to 6,098.04, while the wider all -index fell by 0.30% or 11.34 points to 3,660, 28.
Week in week, the PSEI was 0.61% or 36.71 points of its 6,061.33 finish on February 14.
“After they returned to less than 6,000 to open the week, the local stock market managed to restore when the first round of win -releases started, but the profits were covered as caution driven through,” said Online Brokerage 2tradasia.com in a market note .
For this week, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort that the exit of the Philippines from the gray list of jurisdictions of the FATF could stimulate market sentiment under increased monitoring of money laundering.
The Philippines were on the gray list of the FATF for more than three years or since June 2021.
The Platf -Plenary and working group meetings took place in Paris, France from 17 February to 21 February.
The Dirty Money Watchdog noted that the Philippines ‘positive progress in tackling strategic anti-money laundering practices and combating the financing of terrorism and proliferation financing shortages that were previously identified during their mutual evaluations’.
Mr. Ricafort added that the Bangko Sentral NG Pilipinas’ (BSP) announced that it would further reduce the RRRs from Banks, will also be positive for the market next month, because this would release more than P300 billion in liquidity, it would can be invested in shares.
On Friday, the BSP said that it will not reduce the RRR of universal and commercial banks and financial institutions with quasi-banking functions with 200 basic points (BP) to 5% of 7% of 28 March.
The Central Bank will also lower the RRR for digital banks by 150 BP to 2.5%, while the ratio for savers with 100 bps will be reduced to 0%.
The RRR is the part of the reserves that banks must hold instead of lending. When a bank is obliged to have a lower reserve evatio, it has more money to borrow to borrowers.
“Both developments … would support market sentiment and could increase the trust of investors in the country, a welcome development and one of the positive leads that the markets recently need, given the Trump factor that has weighed in the markets in In recent weeks, “Mr. Ricafort said in an e-mail.
He placed the following support of the PSEI at 6,000 and small resistance at 6,275-6,530.
For his part, 2tradeasia.com set the immediate support of the market at 6,500 and resistance at 6,300-6,400. – SJ Talavera