Stocks are likely to continue to climb as Bangkok’s Sentral NG Pilipinas (BSP) is expected to cut their third consecutive tax cuts on Thursday after a pious comment from the head of the U.S. Federal Reserve over the weekend.
The Philippine Champions Stock Exchange Index (PSEI) rose to 6,281.58 at 0.05% or 3.71 points on Friday, while the widespread all-stock index rose 0.06% or 2.44 points to 3,737.58.
However, the week after week, PSEI was down 0.54% or 34.35 points from the 6,315.93 championship on August 15.
National Heroes Day closed the stock market on Monday.
“Local stocks have experienced a shortened week as investors are cautious before the speech of Jerome H. Powell of the Jackson Hole Summit,” online broker 2tradeasia.com said in the market notes.
Mr. Powell gave a closely watched speech at the Fed’s annual Jackson Hall seminar on Friday, opening the door to cut interest rates at the central bank meeting next month, Reuters reported.
Of course, Mr. Powell’s dirty changes have reduced the likelihood of futures prices falling by 84% at a quarter point in September, and at least 100 basis points (bp) to 3.25-3.5% by mid-next year.
2tradeasia.com said Mr. Powell’s speech could set the tone for this week’s trading and set PSEI support at 6,300 and resistance at 6,600.
Japhet Louis O. Tantianco, research manager at Philstocks Financial Inc., said in a Viber message that Mr. Powell’s dirty tendencies could be bought in the stock market this week.
“Hope to cut interest rates by Sentral Ng Pilipinas in Bangkok at its Monetary Commission meeting [this] Emotions may also be raised in a week. Investors are also expected to look for clues about the BSP policy prospects at the above meeting. ” he said.
All 20 analysts BusinessWorld The poll expects the Monetary Commission to reduce its target reverse repurchase rate to 5% from its current 5.25% at its policy meeting on Thursday.
This will be the third consecutive cut of BSP since April. It has lowered the benchmark interest rate by 125 basis points since its slow cycle began in August 2024.
Mr. Tantiangco set the primary support of PSEI at 6,150 and the primary resistance was 6,400.
“Based on the chart, local markets remain biased as it continues to form lower highs… This week, the market is expected to continue testing these lines,” he said. “With strong trade activity, these lines are regarded as the main target of the market for further development.”
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., set the index’s support at 6,204.04 and the resistance was 6,370.
Mr Ricafort said the market will monitor BSP and FED policy tips, as U.S. central banks cut potential tax rates will also support further relaxation at home. – RMD Ochave and Reuters
