PSEi drops 0.83% as markets close for Holy Week, BSP cuts interest rates

The Philippine Stock Exchange Index (PSEi) fell by 0.83% or 51.48 points to close at 6,134.62 on Wednesday, snapping its five-day rally due to profit-taking before the Holy Week break.

Philippine financial markets will be closed from April 17 to 18 for Maundy Thursday and Good Friday.

The Bangko Sentral ng Pilipinas (BSP) cut benchmark interest rates by 25 basis points on Thursday, reducing borrowing costs since August last year.

Analysts predict that bargain hunting following the market's decline may lift the PSEi this week, but concerns over global economic uncertainties and protectionist policies could dampen sentiment.

Philstocks Financial Research Manager Japhet Tantiangco noted that while conditions are rosy at the domestic front, cautious trading is expected during the Lenten break due to potential risk-off sentiments and uncertainties in global markets.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort expects the PSEi to find support at 6,000 with minor resistance at 6,230-6,490, adding that monetary authorities have signaled possible total local rate cuts of 0.50 percent or 0.75 percent for 2025.