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Philippines: Market to trade ‘within a tight range’
Stock market movements could be muted during a shortened trading week with the central bank’s decision not to cut rates also expected to mitigate volatility.
“I think we will see the market trade within a tight range … after the Bangko Sentral ng Pilipinas (BSP) maintained interest rates which came as a surprise to investors,” Eagle Equities, Inc. research head Chris Mangun said.
“Everyone was expecting a rate hike and its effect on the market [and]we may see the market consolidate at these levels before it starts going up again,” he added.
The BSP’s policymaking Monetary Board last Thursday announced that it was keeping the central bank’s overnight borrowing, lending, and deposit rates at 3 percent, 3.5 percent, and 2.5 percent, respectively, noting that inflation is expected to remain within target in 2018 and 2019.
After a week that saw the benchmark Philippine Stock Exchange index (PSEi) fall to the 7,900 level over rate hike concerns and the prospect of a global trade war, the market could see a respite with no trading scheduled for Maundy Thursday and Good Friday.
Mangun said a support level 7,700 was unlikely to be breached with a recovery possible after Holy Week.
Online brokerage firm 2TradeAsia.com said investors would continue to monitor a simmering trade dispute between the United States and China.
President Donald Trump has announced retaliatory tariffs on Chinese goods over alleged intellectual property theft and Beijing responded by baring a list of US products that could be slapped with reciprocal duties.
The PSEi lost 1.89 percent or 153.65 points on Friday to close at 7,970.80. The broader All Shares dropped 1.35 percent or 66.01 points to finish at 4,824.16.
Source: http://www.manilatimes.net/market-to-trade-within-a-tight-range/388565/