The Philippine Stock Exchange Index (PSEI) was up 0.54 percent to 7,219.19 in early trade. Analysts however said shares would trade within a tight range as investors stay on the sidelines ahead of the May 9 elections.
“We may have some slight relief but I think the markets will tend to hold in this range-bound pattern until elections are over,” Smith Chua, vice president at Bank of the Philippine Islands’ Asset and Trust management Group told ANC’s “Market Edge with Cathy Yang.”
Bangko Sentral ng Pilipinas Governor Amando Tetangco signaled he would keep local policy rates unchanged ahead of a monetary board meeting next month.
“At the moment, we really don’t expect any major developments cropping up that would necessitate a shift in our stance of policy,” Tetangco said in a statement.
The Federal Reserve action was “broadly in line” with market expectations and “should help clear up global positioning in the near term,” Tetangco said, adding a Bank of Japan decision on Thursday was also being monitored.
Tetangco said he did not see “significant changes in economic policy thrusts” after the May 9 elections. Tough-talking Davao City Mayor Rodrigo has widened his lead over erstwhile frontunner, Sen. Grace Poe, in the most recent surveys.
source: www.abs-cbnnews.com
