FOREIGN INVESTMENT pledges plunged by 64.4% in the second quarter as investor sentiment turned cautious amid heightened global uncertainty driven by flip-flopping US tariff policies. Read the full story.
JAKARTA — Indonesia will launch a broader crackdown on the illegal exploitation of natural resources after a survey found that palm plantations on 3.7 million hectares (14,300 square miles) were operating in violation of the law, President Prabowo Subianto said.
The area is almost the size of Switzerland.
Mr. Prabowo added that a total of 5 million hectares of plantations have been under scrutiny for operating in protected forest areas, not reporting their actual size, or not responding to summons from auditors.
He made the comments in his first state of the nation speech, delivered as the country — the world’s largest producer and exporter of palm oil — celebrates 80 years of independence this weekend. Mr. Prabowo won a presidential election last year, and took power in October.
“We will ensure that the Indonesian people will not fall victim to greedy economics,” Mr. Prabowo, speaking in parliament, said, adding that the government had already seized 3.1 million hectares of illegal palm plantations with the help of the military.
“We have used the military to accompany the teams that took over the plantations because there often is resistance,” he said. Critics have expressed concern about the growing role of the military in civilian life under Mr. Prabowo.
In his speech, Mr. Prabowo, a former special forces commander known for his aggressive operational tactics, also warned that the state could confiscate assets of companies that “manipulate and violate” Indonesia’s laws.
He said his government was also planning a crackdown on mining, adding that authorities had received reports of as many as 1,063 illegal operations throughout the vast, mineral-rich archipelago.
He did not specify what type of mines or the commodities they were extracting.
Indonesian Palm Oil Association chief Eddy Martono questioned the source of Mr. Prabowo’s figures and said his organization had not been consulted on the 5 million hectares number.
On the 3.7 million hectares of plantations found to be operating unlawfully, he said companies and cooperatives running them had been asked to clarify their status and some had permits such as land-use concessions and ownership certificates.
“It will create a negative image internationally, suggesting that Indonesian palm oil is encroaching on forests,” he said.
There was no immediate response from the national association of miners to a Reuters request for comment on the president’s assertions.
Indonesia is also the world’s biggest producer of nickel and a major producer of thermal coal, tin, and copper.
Mr. Prabowo added that the government would take action against businesses found to be hoarding and exploiting key commodities in Indonesia.
Large-scale rice mills would also be forced to obtain government permits to ensure rice quality and affordability, he said.
The main stock index touched its all-time high, rising 1.1%, as Mr. Prabowo started his speech, but then retreated to trade 0.4% down by the close.
The rupiah, which had strengthened in recent days, also slipped 0.3%. — Reuters
YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) short-term securities ended mixed on Friday as the one-month tenor went undersubscribed for a third straight week despite the lower volume offered.
The BSP bills fetched bids amounting to P115.207 billion on Friday, below the P120-billion placed on the auction block and the P163.236 billion in demand for the P200-billion offer a week prior. However, the central bank awarded only P103.231 billion in securities.
Broken down, bids for the 28-day papers amounted to only P44.231 billion, lower than the P60 billion auctioned off by the BSP and the P78.41 billion in bids seen last week for the P100 billion on offer. The central bank only accepted P43.231 billion in tenders.
Accepted yields were from 5.295% to 5.43%, wider than the 5.325% to 5.43% from a week prior. This caused the weighted average accepted rate for the 28-day securities to inch up by 0.76 basis point (bp) to 5.3928% from 5.3852% previously.
Meanwhile, tenders for the 56-day bills reached P70.976 billion, higher than the P60-billion offer but below the P84.826 billion in tenders for the P100 billion auctioned off a week prior. The BSP fully awarded the two-month securities.
Banks asked for rates ranging from 5.35% to 5.4%, narrower and lower than the 5.368% to 5.42% band seen in the previous auction. With this, the average rate of the 56-day securities slipped by 0.69 bp to 5.3902% on Friday from the 5.3971% recorded a week prior.
Rates for the BSP bills (BSPB) were mostly steady even as the central bank lowered the offer volume, it said in a statement.
“The BSP reduced the total BSPB volume offering from P200 billion to P120 billion, with an equal mix of P60 billion from P100 billion for each tenor. Total tenders received amounted to P115.207 billion, lower than P163.236 billion in the previous week,” the BSP said. “The 28-day tenor had a bid-to-cover ratio of 0.74x, while the 56-day tenor was 1.18x oversubscribed.”
The central bank uses the BSP securities and its term deposit facility to mop up excess liquidity in the financial system and to better guide short-term market rates towards its policy rate.
The BSP bills also contribute to improved price discovery for debt instruments while supporting monetary policy transmission, the central bank said.
The central bank securities were calibrated to not overlap with the Treasury bill and term deposit tenors also being offered weekly.
Data from the central bank showed that around 50% of its market operations are done through its short-term securities.
The BSP bills are considered high-quality liquid assets for the computation of banks’ liquidity coverage ratio, net stable funding ratio, and minimum liquidity ratio. They can also be traded on the secondary market. — Katherine K. Chan
YIELDS on government securities ended lower across all tenors last week after the Bangko Sentral ng Pilipinas (BSP) signaled that it could cut rates for a third straight time later this month.
GS yields, which move opposite to prices, declined by an average of 4.55 basis points (bps) week on week at the secondary market, based on the PHP Bloomberg Valuation Service Reference Rates as of Aug. 15 published on the Philippine Dealing System’s website.
At the short end, yields on the 91-, 182-, and 364-day Treasury bills (T‑bills) fell by 7.83 bps (to 5.2921%), 5.09 bps (5.5066%), and 0.65 bp (to 5.6592%), respectively.
At the belly of the curve, rates of the two, three-, four-, five-, and seven-year Treasury bonds (T-bonds) went down by 2.61 bps (to 5.6597%), 4.67 bps (5.7361%), 5.26 bps (5.7959%), 4.82 bps (5.8469%), and 3.88 bps (5.9254%), respectively.
Lastly, at the long end, yields on the 10-, 20-, and 25-year bonds dropped by 5.91 bps (to 6.0657%), 4.78 bps (6.4165%), and 4.52 bps (6.4170%), respectively.
GS volume traded fell to P61.1 billion on Friday from P90.84 billion on Aug 8.
“With the BSP underscoring the possibility of an August rate cut following the below-target inflation and GDP (gross domestic product) growth, market participants have been slowly driving short-term yields in anticipation of this eventuality from the local central bank,” the first bond trader said in an e-mail on Friday.
The second bond trader said in a Viber message that GS yields continued to go down as the market continued to reposition in anticipation of a BSP cut at the Monetary Board’s Aug. 28 meeting.
Philippine headline inflation sharply eased to a near six-year low of 0.9% in July, marking the fifth straight month that inflation settled below the central bank’s 2-4% annual goal.
For the first seven months of the year, inflation averaged 1.7%.
Meanwhile, the economy grew by an annual 5.5% in the second quarter, supported by a rebound in agriculture production and faster household consumption.
For the first half, GDP growth averaged 5.4%, slower than the 6.2% a year ago. The government is targeting 5.5-6.5% GDP growth this year.
BSP Governor Eli M. Remolona, Jr. said last week that a rate cut is “quite likely” at the Monetary Board’s next meeting on Aug. 28. The BSP chief also said that they are expecting to deliver only two more rate cuts this year, including the one they could implement this month
After this month’s review, the Monetary Board’s remaining meetings for this year are scheduled for Oct. 9 and Dec. 11.
Both traders said that the release of July US consumer price index data also bolstered expectations of a September reduction by the Federal Reserve, which caused GS yields to rally.
“However, after the US PPI (producer price index) reports came in stronger than anticipated, traders have tempered their expectations that the US central bank could cut more aggressively this year, returning to previous expectations of a total 50-bp cut from the Fed,” the first trader said.
A Federal Reserve interest rate cut in September, the first this year, followed perhaps by another before yearend remains the base forecast for most economists polled by Reuters amid rising concerns about the health of the world’s biggest economy, Reuters reported.
US inflation is rising again, with more upward pressure expected from President Donald J. Trump’s tariffs, and there have been big downward revisions to hiring figures over recent months that suggest the job market is weakening.
Mr. Trump has berated Fed Chair Jerome H. Powell over his reluctance to cut rates. And at the July meeting there was clear divergence from the steady rates position among a minority of Federal Open Market Committee members.
Alongside simmering doubts over the Fed’s independence from political interference and declining reliability of economic data, it has become more difficult for economists to make predictions with great conviction.
Economists are broadly sticking to a more cautious outlook than interest rate futures traders, whose pricing suggests a near-certainty of a September cut and strong likelihood of another, and the possibility of a third by year-end.
A 61% majority, 67 of 110, predicted the Fed would lower its benchmark interest rate by 25 bps to 4%-4.25% on Sept. 17 for the first time this year, up from 53% in July’s survey. One forecast a 50-bp move.
The remaining 42 said the Fed would hold rates again.
Over 60% of respondents, 68 of 110, predicted there would be either one or two rate cuts this year, broadly unchanged from last month. But there was no consensus on where the federal funds rate would be at end-2025.
“The other main driver this week was likely the BTr’s (Bureau of the Treasury) management of the RTB (retail Treasury bond) offer period as it encountered a strong enough demand to have to actively manage the offering by closing the offer to institutions last Friday (Aug. 8) and restricting it further to sponsored accounts last Wednesday (Aug. 13),” the second trader added.
For this week, the first trader said the market may adopt a more cautious stance due to the shortened trading week and as they wait for possible policy signals from the Fed.
The second trader said there could be some volatility early in the week as the market could react to the US data released over the weekend.
“We’ll also see the new RTBs become free to trade on the 20th and it will be interesting to see where it trades considering that the comparable five-year bond currently trading in the market was traded to a low of 5.75% [on Friday], or 25 bps lower than the 6% coupon of the new RTBs,” the trader said. — Heather Caitlin P. Mañago with Reuters
CONCENTRIX PHILIPPINES said it has launched KALIX, a health hub worth over P123 million that is expected to provide free medical services to more than 28,000 employees and their dependents.
KALIX, which combines the Filipino words kalusugan (health) and kalinga (care), with “ix” for intelligent experience, offers free primary care, multi-specialty consultations and clinic services, diagnostics, physical therapy, and heart screenings.
Its pilot facility was launched on Aug. 14 at Exxa Bridgetowne in Quezon City, serving Concentrix employees in its various offices, including those under a work-from-home setup.
“As KALIX is in pilot stage, our focus right now is to ensure the successful operation of the center. At some point in the future, we will evaluate our ability to scale with more branches,” Amit Jagga, executive vice-president and chief business officer of Concentrix Philippines, said in an e-mailed reply to questions.
KALIX has a medical team composed of doctors, nurses, medical technologists, a drug test analyst, a radiation technician, and a clinic manager. It also has a digital portal that provides employees with an end-to-end experience — from booking appointments, availing of diagnostic procedures, to receiving results.
Its services are provided at no cost to patients and will not affect their existing HMO (health maintenance organization) benefit limits, Concentrix said.
“KALIX, as a first-of-its-kind initiative, demonstrates that challenging the status quo makes a difference,” Concentrix Philippines Vice-President for People Solutions Hazel Banas said.
“We know that health and wellness are big priorities and potentially financially challenging for our eligible game-changers and their dependents, so KALIX providing free, centralized, fast but personal care is empowering for everyone. It’s truly a holistic wellness initiative,” she added.
KALIX’s facilities include centralized pods for vital signs, nurse assessments and blood extraction, and physical therapy services. It also features preventive care services such as annual physical exams and executive check-ups.
“KALIX marks the start of a new era of care — seamlessly blending medical expertise, innovation, and genuine Filipino compassion to elevate health and wellness in the workplace and beyond,” Concentrix said. — Beatriz Marie D. Cruz
THE GATEWAY GROUP recently established a temporary showroom for its Mercedes-Benz dealership at the Nustar Resort and Casino in Cebu City. This will remain open while a permanent facility is being built on Ouano Avenue, North Reclamation Area, Mandaue City, with completion eyed in around six or nine months.
For servicing, a temporary service center is at nearby V. Rama corner Pablo Abella Street. Gateway Group COO and EVP Michael Goho declared, “We are eager to capitalize on more opportunities for Mercedes-Benz in the place where we trace our humble roots.”
The Gateway Mercedes-Benz showroom is at Unit 135 of the Nustar Resort and Casino in Kawit Island, South Road Properties, Cebu City.
THIS SEPTEMBER, two icons from Cebu will unite for an evening. Fine jewelry brand DiaGold will present a couture gala by fashion designer Cary Santiago at Shangri-La The Fort in Taguig. Mr. Santiago will unveil a 50-piece couture collection inspired by the movement and grace of plumage, reimagined with a modern softness. The show will mark Mr. Santiago’s solo return to Metro Manila’s runways after a decade. As both producer and the creative force behind the show, DiaGold will debut a high jewelry collection specially designed to complement Mr. Santiago’s couture, featuring organic forms, rich jewel tones, and elegant craftsmanship. DiaGold has branches at Ascott Makati, Glorietta 1, SM Grand Central, SM City Iloilo, SM City Cebu, SM Seaside City Cebu, Ayala Malls Capitol Central Bacolod, Ayala Center Cebu, and Nustar Resort & Casino. For more information, visit www.diagold.com.ph, or follow @diagoldjewelry on Instagram and Facebook.
IN CELEBRATION of Lipstick Month, Avon released 10 new shades of its Ultra Lipstick, a global favorite with one sold every eight seconds. Each Ultra Lipstick is packed with 25% more pigment for high-impact color in one swipe and is enriched with ingredients like Vitamin E, and a blend of natural oils for comfortable wear. Whether a customer opts for Ultra Creamy or Ultra Matte, their lips will stay nourished. New Ultra Matte Shades include Maiden Mauve, Smokey Brown, Terracotta Rouge, Ravishing Rose, and Lush Cocoa. Meanwhile, new Ultra Creamy Shades include Dirty Red, Toasted Rose, Pink Dream, Country Rose, and Cinnamon Vibe. The new Ultra Lipstick shades are available through Avon representatives, or online via Shopee, Lazada, TikTok Shop, and in-store at Watsons and SM Beauty.
HOKA introduces the Mafate 5, the latest evolution of the brand’s iconic trail franchise. Engineered to help ultra-runners conquer trails with confidence, the Mafate 5 delivers enhanced durability, adaptability, and cushioning for long-haul endurance on rough terrain. The Mafate 5 is available now on HOKA.com and at authorized dealers worldwide. The Mafate 5 debuts the all-new Rocker Integrity Technology that helps maintain rocker shape over multiple miles. This curved plate, made from light, pliable TPU, delivers snap with every step. Placed between a firmer SCF EVA layer directly underfoot and a softer CMEVA foam layer beneath it, the shoe boasts a suspended ride experience unlike its predecessors and redefines traditional dual-density foam systems. This new technology allows the shoe to absorb uneven terrain and adapt to the trail, while maintaining a responsive foot strike and efficient toe-off. The outsole utilizes Vibram® Megagrip with Traction Lug technology, ensuring grip on any surface. The Mafate 5 is available at HOKA exclusive stores in One Ayala Mall, GH Mall, SM Aura, Ayala Malls Manila Bay, and R.O.X. Bonifacio High Street.
MAP ACTIVE Philippines, Inc., an exclusive partner of Foot Locker in Southeast Asia, announced the opening of the first Foot Locker Reimagined store in the Philippines. Launched on Aug. 15, this new concept store marks the brand’s 18th store in the Philippines. Key features of the Reimagined store include a focused section showcasing latest drops, displays designed to highlight key features and innovations, a communal try-on area, and an Omni Hub offering exclusive personalization experiences like custom lacing and Omni-channel ordering. Customers can shop an assortment across footwear, apparel, accessories, and shoe care, featuring top global brands including Nike, adidas, Jordan, New Balance, ON, Hoka, Puma, Converse, Salomon, Asics, New Era, Crep Protect, Forcefield, and more. Exclusive drops and product launches are expected throughout the year. The store is located on the R2 Level, Power Plant Mall in Makati.
In today’s evolving healthcare landscape, the partnership between research-based pharmaceutical companies and healthcare professionals (HCPs) remains a cornerstone of patient well-being and medical progress. Rooted in a shared commitment to patients, evidence, innovation, and ethics, this collaboration ensures that life-saving therapies are not only developed with scientific rigor but also reach the people who need them most.
The Pharmaceutical and Healthcare Association of the Philippines (PHAP) regards HCPs, including doctors, nurses, pharmacists, and clinical practitioners, as indispensable partners in saving lives and improving health outcomes. PHAP is committed to transparency and accountability, and we deeply value the contributions of all healthcare professionals, particularly physicians who tirelessly serve at the frontlines of patient care. Respect for their dedication and professionalism is fundamental to our work.
Integrity is the foundation of these partnerships. At the heart of everything we do lies a singular priority: the health and well-being of patients. We believe that integrity and ethical practice are collective responsibilities shared by all healthcare stakeholders without exception. This is why PHAP and its members adhere to strict self-regulatory measures anchored on ethical interactions, ensuring that medical decisions are made in the best interests of patients. But we also recognize that no one sector can do this alone.
As the Philippine counterpart of the International Federation of Pharmaceutical Manufacturers & Associations (IFPMA), PHAP has been at the forefront of promoting ethical interactions in the healthcare community. In 2018, healthcare organizations adopted the Philippine Consensus Framework for Ethical Collaboration, based on the global “Consensus Framework for Ethical Collaboration Between Patients’ Organizations, Healthcare Professionals, and the Pharmaceutical Industry.”
This global framework, first launched in 2014, was developed by leading organizations including the IFPMA, the International Alliance of Patient Organizations, the World Medical Association, the International Council of Nurses, the International Pharmaceutical Federation, and the International Hospital Federation.
Locally, the signatories include PHAP, the Philippine Alliance of Patient Organizations, the Philippine Medical Association, the Philippine Pharmacists Association, and the Philippine Nurses Association. In a historic milestone last year, all 87 Department of Health-retained hospitals signed the Philippine Consensus Framework for Ethical Collaboration, signaling a nationwide commitment to principled healthcare partnerships.
The Consensus Framework outlines seven guiding principles that shape interactions across the healthcare sector:
First, “Put Patients First.” Patients must always remain the top priority in every healthcare decision.
Second, “Support Ethical Research and Innovation.” Partners encourage and engage in basic and applied research, ensuring that clinical trials and health studies are conducted ethically to generate new knowledge that benefits public health.
Third, “Ensure Independence and Ethical Conduct.” Interactions between stakeholders must remain ethical, professional, and free from undue influence.
Fourth, “Promote Transparency and Accountability.” Institutions and individuals alike must support openness and accountability in all activities.
Fifth, “Establish Trust and Solidarity.” Integrity and honesty must guide every action, with truthful communication and shared responsibilities to improve patient care.
Sixth, “Prioritize Quality Care and Innovation.” Healthcare must advance patient well-being and safety through evidence-based, innovative solutions, particularly in times of crisis.
Seventh, “Respect for All.” Every patient, healthcare worker, institution, and organization deserve dignity, fairness, and respect for their values, rights, and privacy.
The abovementioned principles create a culture of trust where collaboration flourishes and patient welfare is always safeguarded.
Beyond the Consensus Framework, the biopharmaceutical industry in the Philippines has established the PHAP Code of Practice, which aligns with global and regional standards as well as national laws. The Code preserves the independence of healthcare professionals in prescribing medicines and underscores that all industry relationships must support HCPs in fulfilling their professional duties to patients.
The Code requires PHAP members to uphold the highest ethical standards in all engagements with healthcare providers, patient organizations, and communities. Compliance is a prerequisite for PHAP membership and is overseen by an independent ethics committee composed of respected leaders from health and academe.
PHAP has also supported the Department of Health in developing and adopting guidelines on the promotion and marketing of prescription medicines and medical devices. These guidelines are aligned with international commitments, such as the 2011 Mexico City and Kuala Lumpur Business Codes of Ethics endorsed by APEC heads of state, including the Philippines.
The Consensus Framework is document which emphasizes that the healthcare sector must never be reduced to a battlefield of competing interests. Instead, it should serve as a platform for constructive collaboration where patients benefit from the combined strengths of government, healthcare professionals, the industry, civil society, and the media.
Ethical interactions build the trust necessary for progress. They ensure that innovations reach patients fairly, that healthcare decisions are guided by science and integrity, and that the system as a whole remains resilient in the face of challenges.
PHAP calls on all stakeholders — from healthcare professionals, patient groups, industry leaders, government, media, to civil society — to continue working together to uphold the highest ethical standards. By doing so, we ensure that patient welfare is always placed above all else.
Our first and ultimate loyalty is, and must remain, to the Filipino patient. Collaboration rooted in ethics is the best way to honor that loyalty and to build a healthcare system that is both trustworthy and sustainable.
Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines which represents the biopharmaceutical medicines and vaccines industry in the country. Its members are at the forefront of developing, investing and delivering innovative medicines, vaccines and diagnostics for Filipinos to live healthier and more productive lives.
MONEY SENT home by Filipinos abroad grew faster in June to hit a six-month high, driven by remittances from land-based workers, the Bangko Sentral ng Pilipinas (BSP) said.
Read the full story.
LONDON — Britain’s government will not provide financial support to the struggling bioethanol industry, leaving a sector hit hard by the UK’s tariff deal with US President Donald Trump facing imminent collapse.
The failure of the industry, which supports thousands of jobs, could prove to be an embarrassment for Prime Minister Keir Starmer, who hailed May’s trade deal as a boost to businesses that would protect employment and attract investment.
It would also serve as a stark example of the global impacts of Mr. Trump’s reordering of world trade, with the industry’s collapse set to deal a blow to production of byproducts including animal feed and carbon dioxide as well as the British farmers who supply the sector.
“We … have taken the difficult decision not to offer direct funding as it would not provide value for the taxpayer or solve the long-term problems the industry faces,” a government spokesman said.
The spokesperson said the trade deal had protected hundreds of thousands of jobs in the auto and aerospace industries.
However, under the agreement, the UK’s 19% tariffs on US ethanol fell to zero, through a 1.4 billion-liter quota — a figure equivalent to the size of the UK’s entire ethanol market.
Bioethanol is produced from crops such as wheat and is used to make automotive fuel greener and to produce sustainable aviation fuel.
In June, Starmer’s government launched its industrial strategy, promising to invest in the green economy.
Britain has two major bioethanol plants in northern England — Associated British Foods’ Vivergo plant and one operated by Ensus, owned by Germany’s Sudzucker Group — which account for nearly all of its production capacity.
Both groups have said the trade deal, along with existing regulations that already gave US producers an advantage in the British market, had made the environment impossible.
AB Foods, which had said in June it would shutter the Vivergo plant unless the government stepped in with an aid package, said on Friday it would start an orderly closure process immediately with production of bioethanol and animal feed ceasing by Aug. 31.
“It is deeply regrettable that the government has chosen not to support a key national asset,” a spokesperson for AB Foods said, adding that the decision threw away Britain’s sovereign capability in clean fuels.
“Jobs in clean energy will now move overseas — principally to the US but also to other countries with a more sensible regulatory environment,” the spokesperson added.
Ensus’ plant will remain open, for the time being at least.
Ensus’ plant differs from Vivergo’s in that it also produces carbon dioxide which is used in the soft drinks, packaged foods and nuclear industries and in hospitals. Ensus produces up to 60% of the UK’s annual needs.
Grant Pearson, chairman of Ensus UK, said the government was looking at options to secure an ongoing supply of carbon dioxide from its facility.
“Urgent discussions will be taking place to provide a level of assurance to the Sudzucker and CropEnergies Boards that there is a very high level of confidence that an acceptable long term arrangement can be reached,” he said. CropEnergies is another unit of Sudzucker.
Separately, the government said it was looking at increasing the amount of ethanol in UK fuel from the current 10% to assist the industry, though that will come too late for Vivergo. — Reuters
Here’s a quick glance at how PSEi stocks fared on Friday, August 15, 2025.
PHILIPPINE STOCKS may continue to move sideways this week and get a lift from hopes of further monetary easing and bargain hunting as investors wait for new catalysts.
On Friday, the bellwether Philippine Stock Exchange index (PSEi) rose by 0.38% or 24.08 points to close at 6,315.93, while the broader all shares index increased by 0.21% or 8.20 points to 3,751.23.
Week on week, however, the PSEi fell by 0.37% or 23.45 points from the 6,339.38 finish on Aug. 8.
“The PSEi closed marginally lower [last] week as investors sifted through second-quarter earnings data while weighing a potential Federal Reserve rate cut,” online brokerage 2TradeAsia.com said in a market note.
“Profit taking took over last week as local economic concerns weighed on sentiment. The local market has been alternately moving between gains and losses for 10 weeks already as investors remain indecisive of its direction,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
For this week, Philippine shares could remain range-bound, he said.
“With the market at attractive levels, we may see some bargain hunting in this week’s trading,” Mr. Tantiangco said. “A strong rally is not expected, however, unless we see fresh positive leads. Investors are still expected to maintain a cautious stance while waiting for new catalysts.”
He added that expectations of a rate cut at the Bangko Sentral ng Pilipinas’ (BSP) Aug. 28 policy meeting could give the market support.
Last week, BSP Governor Eli M. Remolona, Jr. said a rate cut is “quite likely” at their meeting this month as inflation is likely to settle within its annual target.
The central bank has lowered borrowing costs by 125 basis points (bps) since it began its easing cycle in August 2024, bringing the benchmark rate to 5.25%.
Mr. Remolona said they are expecting to deliver two more rate cuts this year. However, three reductions are “unlikely.”
Mr. Tantiangco said the PSEi is expected to trade between 6,150 and 6,400 this week. “From a technical standpoint, the local market is still bearishly biased as it continues to form lower highs.”
Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort put the PSEi’s support at 6,204.04 and resistance at 6,591.94.
“BSP Governor Remolona reiterated dovish signals on possible monetary easing in terms of possible two 25-bp rate cuts for the rest of 2025 amid benign inflation and external uncertainties that could slow down local economic growth, signaling policy priority of boosting the local economy,” Mr. Ricafort said in an e-mail.
2TradeAsia.com placed the PSEi’s immediate support at 6,250 and resistance at 6,550.
“The divergence between a potential global risk-on rally and local market lull creates a tactical consideration for market participants… The impending easing cycle may be a significant potential catalyst for equities,” it said. — Revin Mikhael D. Ochave
