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BSP policy meeting to set tone for PSEi

September 23, 2019

The local bourse — seen to trade within 7,800 to 8,000 range — will be taking its cue from the results of the monetary policy meeting scheduled this week.

“The focus of the week would be the BSP’s (Bangko Sentral ng Pilipinas) policy meeting … Investors are hoping for a policy rate cut from the monetary authority,” Philstocks Financial, Inc. research associate Japhet Tantiangco said.

“If given, then it could help the market end next week on a positive note,” he added.

The BSP monetary policy meeting is set on September 26.

The BSP trimmed key policy rates by 25 basis points in August, bringing overnight reverse repurchase rate, repurchase rate and deposit rate at 4.25 percent, 4.75 percent and 3.75 percent respectively.

Tantiangco said the stock market may also be lifted by investors hunting for bargains of four days of declines.

Regina Capital Development Corp. head of sales Luis Limlingan said investors would also be looking out for foreign developments, including the Saudi drone attack and trade war between the United States and China.

On September 14, the oil facilities in Abqaiq and Khurais were attacked with 5.7 million barrels of daily crude production going to waste. Global oil prices went up amid risks in supply.

Meanwhile, a Hong Kong publication cited last week an informal adviser of President Trump, Michael Pillsbury, as saying Washington was ready to escalate the US-China trade war if no agreement was reached soon.

Another wave of US tariff increases is scheduled for October 1, with high-level US and Chinese officials also due to resume negotiations early next month.

“Any negative development from these especially from the latter could trigger sell offs in the local bourse,” Tantiangco said.

On Friday, the benchmark Philippine Stock Exchange index (PSEi) fell 0.51 percent or 40.21 points to 7,871.11 while the wider All Shares dipped 0.22 percent or 10.61 points to 4,772.35. TYRONE C. PIAD

WITH A REPORT FROM AFP

Credit belongs to : www.manilatimes.net

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