The Philippine Stock Exchange index (PSEi) ended almost flat on Monday, Feb. 24, as gains of banks and conglomerates managed to balance losses of other sectors.

The main index shed 2.07 points or 0.03 percent to close at 6,095.97 with the industrial and services counters leading decliners. Volume was thin at 1.38 billion shares worth P4.47 billion as losers beat gainers 111 to 73 with 54 unchanged.

“Philippine shares got off to a muted start, as the RRR (reserve rate requirement) cut decision of the BSP (Bangko Sentral ng Pilipinas) was offset by the sell-off in the US last Friday,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

Abacus Securities Corporation said the RRR cut is not expected to pull interest rates lower since banks already have more than enough liquidity adding that banks will be the only beneficiary as it will give their net interest margins a small boost.

"The local market edged lower taking cues from Wall Street's plunge last Friday driven by inflation concerns. The University of Michigan's consumer sentiment index for February showed a significant drop as consumers worry over inflation due to the US government's tariff policies," said Philstocks Financial Research Manager Japhet Tantiangco.

Limlingan noted that, this week's key economic highlight in the US is the core PCE inflation report on Friday, which could influence the Fed's policy outlook. Several Fed officials are also scheduled to speak, potentially providing further insights on monetary policy.

Locally, investors are anticipating the release of the latest Trade Balance and Budget Balance data on Feb. 28, which could offer clues about the country’s fiscal and external position.