Philippine stocks may continue to move sideways this week as investors take cues from the upcoming release of key economic data that could lead to bets on a Bangko Sentral ng Pilipinas (BSP) rate cut this month.
On Friday, the Philippine Stock Exchange Index (PSEI) rose 0.89% or 53.11 points to close at 6,022.24, while the broader all-share index rose 0.85% or 30.23 points to 3,568.34.
Week to week, the PSEi rose 25.11 points from 5,997.13 points on November 21.
“Local stock markets closed marginally higher above the 6,000 level after a largely sideways week as investors awaited fresh catalysts to determine the market's next move,” online brokerage 2TradeAsia.com said in a market note. “Index hovers around 6,000 area, intraday moves highlight attempt to divert from corruption headlines.”
Philstocks Financial, Inc. Research Manager Japhet Louis O. “Despite the tough fight, positive sentiment took over the local market last week, allowing it to extend its gains and even close above the $6,000 level,” Tantiangco said in a Viber message. “However, the exchange is still considered to be on a downtrend, as it has yet to surpass the October 20 peak of 6,141.87.”
For this week, he said, players will be monitoring key economic reports for leads.
“Investors look forward to the Philippines' November inflation data, with the lower print expected to boost sentiment as it will support expectations of a BSP rate cut. Investors may also take cues from the S&P Global Philippines Manufacturing PMI (purchasing managers' index),” Mr. Tantiangco said.
November inflation data will be released on Friday (December 5). A businessworld The survey of 15 analysts yielded an average estimate of 1.6% for the consumer price index, which is within the BSP's 1.1-1.9% month-ahead estimate. If realized, this would be down from the 1.7% clip in October and the 2.5% clip logged in the same month a year ago. That would be the slowest pace since a 1.5% print in August and would mark the ninth consecutive month that inflation has fallen below the central bank's 2-4% annual target.
Meanwhile, PMI data will come on Monday (December 1).
“Finally, investors can keep an eye on the peso's movement, with further appreciation expected to support the local market,” Mr Tantiangco said. “Chart-wise, the PSEI may continue to test the 6,000 level. If it is able to hold its position on the said line, it will be considered its support while the next resistance will be seen at 6,150. The local market is currently trading above its 10-day and 50-day exponential moving averages, indicating positive momentum.”
Meanwhile, 2TradeAsia.com said the November 30 anti-corruption protests could serve as a short-term catalyst for the market. ,[These] Volatility may increase, but long-term reforms are desperately needed to reduce risks impacting equities in the country.
This placed PSEI's immediate support at 5,800 and resistance at 6,000, with secondary resistance at 6,100. , Alexandria Grace C. Magno
