Investors looking to hold back ahead of BSP meet
The benchmark Philippine Stock Exchange index (PSEi) will continue a sideways trade, with near-term upside likely capped around the 6,600 level ahead of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting this week, according to an investment bank.
The PSEi closed the previous week higher by 0.02 percent to 6,508.34.
“The consensus is that the Monetary Board will keep interest rates steady, so all eyes and ears will be on the BSP’s interest rate guidance given the Federal Reserve’s more hawkish stance. investors will also be on standby for any announcement on Malacañang’s choice of next BSP governor,” Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said in a note to investors.
“We expect selective bargain hunting to continue this week as investors turn their focus on the BSP’s policy rate decision and outlook,” he added.
Colet said the PSEi would trade within the 6,400 to 6,500 range and may encounter selling pressure in the 6,600 area.
Michael Ricafort, chief economist at the Rizal Commercial Banking Corp., was also expecting a pause in policy rates during the BSP’s meeting on Thursday.
He said the monthly resistance for the PSEi was from 6,590 to 6,630 while major support could be found around the 6,250 level.
