Investors await BSP stance reveal for cues

Investors will be looking at the Bangko Sentral ng Pilipinas’ (BSP) latest policy rate stance this week after subdued economic data pulled down the market.

The benchmark Philippine Stock Exchange Index (PSEi) inched closer to the 6,400 level on Friday, ending the week at 6,511.93. This is a 1.57-percent drop from 6,615.55 a week ago.

Inflation accelerated to 3.8 percent in April from 3.7 percent in March, while economic growth was slower than expected at 5.7 percent, dampening market sentiment.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp. said the central bank may match the US Federal Reserve’s rate pause announced on May 1.

Locally, the Monetary Board is set to meet on May 16 for its latest policy stance.

Earlier, BSP Governor Eli Remolona Jr. said there may still be room for rate cuts in the fourth quarter of the year or the first quarter of 2025, if inflation stayed below 4 percent.

According to Ricafort, gains from US markets, as well as “steady” global crude oil prices may provide support for the local stock market.

He said this indicated “that the worst for the markets [was] already seen last month,” especially due to easing geopolitical tensions in the Middle East.

Ricafort sees one-month major resistance levels at between the 6,740 and 6,820 marks. —Meg J. Adonis INQ