Philippine stocks are likely to climb further this week as investors expect further easing of currencies in the United States and the United States, which will support economic growth.
On Friday, the Philippine Stock Exchange Index (PSEI) rose 0.49% or 30.87 points to close 6,264.49, while the widespread all-stock index increased 0.17% or 6.36 points to 3,740.81.
The week after week, PSEI also increased by 155.28 points from 6,109.21 points closed on September 12.
“Local markets are further up with positive clues from Wall Street and lower local yields,” Japhet Louis O. Tantianco, research manager at Philstocks Financial Inc., said in a market notes on Friday. “This is after the Fed’s move to lower its policy rate by 25 basis points (BP) and their signal that they lowered tax rates higher in a year.”
“Philippine stocks gained attention [last] In the next policy meeting, the next policy meeting that local monetary authorities may second, as the momentum increases. ”
According to Reuters, the Fed’s risk increases the risk of unemployment, lowering interest rates for the first time since December, noting that subsequent cuts will stop any slides on the labor market, black unemployment, work week declines, and other signs of weakness.
After Fed Chairman Jerome H. Powell spoke at a press conference, the U.S. central bank lowered its benchmark interest rate by a quarter percentage point to the 4%-4.25% range and said there will be more cuts at meetings in October and December, saying softening the job market is now the top MINS for him and his policy makers.
Meanwhile, last month, the third consecutive meeting of Sentral Ng Pilipinas (BSP) in Bangkok lowered 25 basis points, raising policy interest rates to 5%. It has cut its benchmark interest rate by 150 basis points since August 2024.
BSP Governor Eli M. Remolona (Jr.
2tradeasia.com said the prospect of more Fed and BSP cuts “should provide lower interest rates and a steeper production curve trend for global risk assets.”
“This should also provide opportunities for cyclical and emerging markets to shine, especially in a weaker green background.”
It added that lower interest rates will also increase company revenue, which will improve market sentiment. It gives PSEI instant support of 6,000 and resistance of 6,300.
Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message that the end of “Ghost Moon” could promote market activity. Ghost Month is a period in the calendar where some investors avoid making large investments or decisions, resulting in lower trading volumes. This year, it operates from August 23 to September 21. AGC Magno and Reuters
