Volatility to continue before Fed, BSP decisions

PHILIPPINE SHARES may see continued volatility this week before the policy meetings of the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP), which investors will monitor for potential forward-looking statements.

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On Friday, the Philippine Stock Exchange index (PSEi) climbed by 1.04% or 61.64 points to end at 5,949.22, while the broader all shares index rose 0.55% or 19.03 points to close at 3,477.68.

Week on week, however, the PSEi decreased by 73.02 points from its 6,022.24 close on Nov. 28.

Analysts said Friday’s rebound was driven by the slower-than-expected November Philippine inflation print, which bolstered BSP rate cut hopes.

However, Philstocks Financial, Inc. Research Manager Japhet Louis 0. Tantiangco noted that the PSEi failed to return above the 6,000 mark.

“Seemingly, the market is not yet prepared to take the said level as worries over the local economy hinder investors’ confidence from building up further,” he said in a Viber message.