Philippine stocks could support their momentum and continue to rise this week following the return of LellWether to the 6,000 level on Friday after the ban by the Bangko Sentral NG Pilipinas
On Friday, the Philippine Stock Exchange Index (PSEI) rose by 0.78% or 46.72 points to end at 6,036.72, while the broader index declined by 0.53% points to close at 3,434.94.
This was the first time that the major index closed at 6,000 levels in two weeks or since it ended at 6 0 022.24 on November 28.
Week by week, the psei increased by 87.5 points from 5,949.22 that closed on December 5.
“The local Bourure returned an average of 6,000 6,000 as investors were bound by the ‘decided low rates’ from the BSP and the US Fed,” said 2TradeaSeaS.com in the market price.
“The local market has come back above the 6,000 level again, which is said to be a reboin driven by the Fed and the monetary policy of the BSP.
The Fed cut rates by a quarter-peint point in a vote divided by percentage points, but signaled that it may delay further reductions in borrowing costs as officials look for clear signals about the market’s direction to “remain elevated,” the inquiry reported. Wednesday’s cut brought the policy rate to a range of 3.5%-3.75%.
On Thursday, the BSP cut its benchmark interest rate by 25 basis points (BPs) for the fifth straight meeting to bring the policy rate to 4.5%, the lowest level in 18 years. Businessworld poll. The monetary board has now moved 200 BPs to the reduction from August 2024.
BSP Governor Eli M. Remolona, Jr. he said that benign inflation gives them room to help support weak domestic demand among currencies that affect money, but as the investment cycle approaches, even when economic prospects remain.
This week, economic concerns will continue to be the focus, said Mr Tantiangco. “While the recent monetary policy is gaining more support, affluent consumer and investor confidence to change the concern about bankruptcy can continue to weigh on economic activity.”
“Chart-wise, besides the 6,000 level, the local market has also exceeded its 50-day emerging moving average…so far, short-term technical indicators have been able to check themselves,” it added. “The local market can test the validity of a breach of the 6,000 line. If it can manage its position above this level, 6,000 will act as its new support while its next resistance is seen at 6,150.”
2TradeSia.com placed Psei immediate support at 5,800 and resistance at 6,000, with secondary resistance at 6,100. – Alexandria Grace C. Magno
