PSEi seen to sustain rally on strong earnings, lower inflation

The Philippine stock market is expected to maintain its positive momentum and upward trend this week, building on last week's gains.

The PSEi closed at 6,360.77 on Monday, March 11, 2025, marking its sixth straight session in the positive territory.

This rally is driven by strong corporate earnings, a lower February inflation rate, and expectations of a possible 25 basis points rate cut by the Bangko Sentral ng Pilipinas (BSP).

The sustained climb was also supported by US equities, which bounced back on Friday after softer-than-expected US jobs data, potentially supporting future Fed rate cuts.

Analysts believe the significant drop in inflation fuels expectations for a possible rate cut by the BSP in its upcoming monetary board meeting.

A sustained break above the 6,300 level for the PSEi could lead to a further rise towards the 6,500 mark.

Conversely, failure to hold the rally above 6,300 might trigger profit-taking activities.

Potential disruptions from US President Trump's tariff policies could introduce uncertainty and limit the market's upward movement.