Stock traders to take cues from abroad

MANILA, Philippines — The local stock market seeks to regain its momentum as it returns from the Holy Week break, with investors expected to take their cue from overseas developments this week.

The Philippine Stock Exchange index (PSEi) finished in negative territory last Wednesday at 6,134.62 during a shortened trading week, ending a five-day winning streak.

Week-on-week, however, the PSEi improved by 0.86 percent.

“Bargain hunting activities helped push the PSEi to 6,134.62 helped by the resumption of the Bangko Sentral ng Pilipinas (BSP)’s easing cycle which is keeping investors optimistic along with stable inflation,” Reyes Tacandong & Co. senior adviser Jonathan Ravelas said.

Ravelas, however, said that US President Donald Trump’s “tariffying” moves could cap the market’s rally to 6,200 levels this week.

“Market liquidity will normalize and  share prices will again look to the US for direction, specifically downside risks from Trump’s latest tariff threats on pharmaceuticals and chip exports to the US from the rest of the world,” First Metro Investment Corp. head of research Cristina Ulang said.

Ulang said that upside risk, on the other hand, would arise from any news about China’s ascent to the negotiating table with Trump.

Unicapital Securities head of research Wendy Estacio-Cruz, for her part, said the market may have already priced in the 90-day pause in US tariff implementation and the recent BSP rate cut.