BSP’s next policy rate move seen shaping stocks direction

MANILA, Philippines — Investors will take cues from possible hints about the Bangko Sentral ng Pilipinas’ (BSP) next policy meeting as well as the index rebalancing in steering the local bourse this week.

Wendy Estacio-Cruz, research head at Unicapital Securities Inc., said the rate-setting meeting would be a “key domestic catalyst.”

The BSP is set to announce its next monetary policy stance on Aug. 28.

READ: August BSP rate cut still ‘on the table,’ says Remolona

So far, BSP Governor Eli Remolona Jr. has hinted at two more rate cuts this year, citing easing inflation.

At the same time, Luis Limlingan, head of sales at stock brokerage house Regina Capital Development Corp., said the Philippine Stock Exchange Index (PSEi) rebalancing taking effect today, Aug. 18, may influence the market.

To recall, the PSE kicked out Bloomberry Resorts Corp. and included DigiPlus Interactive Corp., whose share price has recently been battered because of threats of an outright ban on online gambling.

Still, analysts said DigiPlus was able to make the cut because it had met the criteria within the evaluation period, which ended before the policy change was proposed.

Last week, the benchmark PSEi closed lower by 0.37 percent week-on-week to 6,315.

It mostly moved sideways because of the lack of spark, although it eventually ended lower as traders pocketed gains.
Cruz expects the bourse to move within the 6,300 to 6,500 levels this week.

(2025/08/18-08:49)

To read a full story, please click here to find out how to subscribe.