PSEi seen to dip ahead of BSP meet, MSCI rebalancing

Philippine shares are anticipated to decline as investors await the Bangko Sentral ng Pilipinas' (BSP) policy meeting and MSCI rebalancing results.

The Philippine Stock Exchange index (PSEi) fell by 1.92% to close at 6,037.12 yesterday, with the broader All Shares index dropping by 1.27%.

Investors are largely staying on the sidelines ahead of the BSP's Monetary Board interest rate decision on February 13.

Analysts widely expect the central bank to slash its benchmark interest rates by 25 basis points, shifting focus from inflation control to supporting economic growth.

This anticipated rate cut is justified by weaker-than-expected gross domestic product (GDP) growth in the fourth quarter of 2024 and a stable inflation environment.

Foreign investors were net sellers yesterday with outflows amounting to P438.2 million.