The PSEi experienced mixed performance last week, ending flattish (+0.61% w\/w) to close at 6,098.04. The market struggled to find direction amid regional weakness, with increased volatility from geopolitical tensions and ongoing concerns over global trade policies. Investors monitored US President Trump’s latest tariff threats on auto, semiconductor, and pharmaceutical imports. Moreover, latest Federal Reserve meeting minutes indicated that officials had cautioned against cutting interest rates, emphasising the need for further progress on inflation before making any adjustments. Foreign investors were net sellers throughout the week, although selective bargain hunting managed to lift the market to positive territory by Friday’s close. After market, the Bangko Sentral ng Pilipinas (BSP) announced a reduction in the reserve requirement ratio effective 28, Mar 2025.<\/p>\n\n\n\n
The market is set to trade higher as investors price in positive catalysts this week. Firstly, the BSP has reduced RRR by 200bps for large banks (down to 5%) and by 150bps for digital banks (down to 2.5%) effective 28 Mar 2025. This is expected to inject approximately PHP300bn in loanable funds into the economy. Secondly, the Philippines’ removal from the Financial Action Task Force (FATF) gray list is likely to boost sentiment amid improved country risk profile and by attracting fresh capital inflows. Investors will also be closely monitoring FY24 earnings reports from index heavyweights as well as the release of US 4Q24 GDP q\/q results, which is expected to be more tempered at 2.3% versus the prior quarter’s 3.1%, influencing market direction and trading volumes. Trading activity is likely to pick up towards the end of the week, as the MSCI quarterly rebalancing changes will be made available as of the close of 28 Feb 2025 (effective 3 Mar 2025), in which the Philippines experienced a slight country down-weight (-0.0132%). For the MSCI Philippine Standard Index, JG Summit Holdings, Inc. (JGS), and Universal Robina Corp. (URC) were migrated to the MSCI Philippines Small Cap Index, wherein Monde Nissin Corp (MONDE) was also added.<\/p>\n\n\n\n
Recommendation<\/strong><\/td>| Buy<\/td><\/tr> | 1-Year Target Price<\/strong><\/td> | PHP 5.10<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n | <\/div>\n\n\n\n APX’s technicals look promising as it has formed a head and shoulders bottom pattern, suggesting a potential trend reversal. The price appears to have completed a period of accumulation at the bottom of a major downtrend, with a breakout through resistance signalling the start of a new uptrend. With sentiment at its peak, accumulating at current levels is recommended.<\/p>\n\n\n\n Accumulating APX at current levels isadvisable. Take profits 15% above youraverage cost and set stop loss limits 8% below your average cost.<\/p>\n\n\n\n <\/div>\n\n\n\n 2. SM Prime Holdings, Inc. (SMPH)<\/h3>\n\n\n\n
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