December 16, 2024 | 12:00am
MANILA, Philippines — Local stocks are seen moving sideways this week as investors keep an eye on key policy rate decisions by the US Federal Reserve and the Bangko Sentral ng Pilipinas.
The benchmark Philippine Stock Exchange index (PSEi) closed in the red territory last Friday, extending its losing streak to three sessions.
Week-on-week, the PSEi declined by 1.67 percent to 6,616.51.
Unicapital head of research Wendy Estacio-Cruz said the PSEi closed lower as investors await for interest rate decisions by the US Fed and BSP this week.
“In our view, it is likely that the US Fed will cut a quarter percentage point, as November inflation rate remains above target of two percent” Estacio-Cruz said.
In the next five days, she said the index is seen hovering from 6,600 to 6,700.
Online brokerage firm 2TradeAsia.com said with local inflation relatively more behaved than counterparts abroad, the BSP has some leeway for another 25-basis point cut on its final meeting on Dec. 19.
“This will bring the benchmark rate to below six percent by the end of the year, accompanied by comments from Fed officials of up to 100 bps cuts throughout next year,” it said.
Philstocks Financial research manager Japhet Tantiangco said from a valuation standpoint, the local market remains attractive, making it ripe for bargain hunting.
Tantiangco said rate cuts from the US Fed and the BSP as well as hints of further easing are expected to give a boost to investor sentiment which, in turn, could help the market achieve a positive close.
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