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US tariffs seen dragging down PSEi

US tariffs seen dragging down PSEi

Provided by Philippine Daily Inquirer.

PSEi mirrors global markets slump amid escalating trade wars
FILE PHOTO: Philippine Stock Exchange logo. INQUIRER FILES



MANILA, Philippines — This week, escalating trade war tensions in the West might overshadow expectations that the Bangko Sentral ng Pilipinas (BSP) will cut rates, potentially dragging the local bourse.

“Investors are expected to watch out for the implementation of the US’ upcoming reciprocal tariffs to see if there will be any adjustments,” Japhet Tantiangco, research head at Philstocks Financial Inc., said over the weekend.

The benchmark Philippine Stock Exchange Index (PSEi) stayed in the red territory for most of last week as traders watched tariff movements in the United States.

Despite small wins, the PSEi closed lower on Friday by 1.9 percent week-on-week to 6,147.44.

This week, US President Donald Trump is anticipated to push ahead with his threats to impose higher import tariffs on other countries that plan to raise duties on goods coming from the United States.

“Any new tariff announcement from the US government is expected to pull the local bourse lower,” Tantiangco said.

Still, he noted that the BSP’s dovish monetary policy stance could provide some support. The Monetary Board is set to meet on Thursday, April 3.

Inflation data


Investors are likewise expected to watch out for March inflation data that will come out on Friday.

Tantiangco sees the bourse trading between 6,000 and 6,400 this week.

At the same time, trading platform 2TradeAsia.com pointed out that “stabilized global appetite” may be the PSEi’s only way out of its current range.

—MEG J. ADONIS

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AFP-JIJI PRESS NEWS JOURNAL


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