OFW cash inflows might lift PSEI

Investors are expected to price in latest cash remittances and global economic data to possibly lift the Philippine Stock Exchange Index (PSEi) after being in the red for seven consecutive sessions.

The benchmark index fell to 6,659.39 on Friday from 6,745.46 a week prior after the Bangko Sentral ng Pilipinas (BSP) kept interest rates at 6.5 percent due to faster inflation in March.

Globally, tension between Israel and Iran pushed markets down.

In the United States, the Dow Jones Industrial Average fell by 1.24 percent, while the S&P 500 dipped by 1.46 percent on Friday.

“Any healthy upward correction at the PSEi could take place once the markets already price in the latest geopolitical risks,” said Michael Ricafort, chief economist at Rizal Commercial Banking Corp.

“In the meantime, US/global/local financial markets remain volatile, as seen over the past two weeks,” he added.

Meanwhile, First Metro Securities said bargain hunters may take advantage of the local market’s weakness and retest the 6,800 and 7,000 resistance zones.

Local traders will also look at the latest cash remittance data that the BSP will release today, April 15, First Metro said. —MEG J. ADONIS INQ

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