Trading at the local stock market this week will mainly be influenced by the release of key economic data, such as inflation and manufacturing output although it is seen moving between the 6,400 to 6,600 level.
Philstocks Financial Inc. senior research manager Japhet Tantiangco said investors will be primarily watching out for June inflation rate data, which is slated for release this week.
Tantiangco said further slowdown in June inflation rate from May’s 6.1 percent may boost investor sentiments this week.
The Bangko Sentral ng Pilipinas last Friday said inflation in June likely eased to as low as 5.3 percent from 6.1 percent in May on lower prices of meat, fruits and liquefied petroleum gas.
However, the US Federal Reserve’s continued hawkish stance will also affect market sentiments over the short-term period.
Tantiangco said the local market’s movement may also take cues from the upcoming June S&P Global Philippines Manufacturing Purchasing Managers Index and labor force survey for clues on the strength of local economy.
“Strong figures may boost sentiments which in turn could bring the market higher,” Tantiangco said.
The bellwether Philippine Stock Exchange Index rose by 74 points week-on-week to close the first half of 2023 at 6,468.07 boosted by the semestral portfolio window dressing and bargain hunting.
Analysts said said investors are re-evaluating their strategies for the second half of the year.
Online brokerage firm 2TradeAsia.com said the upcoming earnings season could provide investors clues on what sectors will perform strongly for the second semester of the year,
“With the upcoming semestral earnings season, anything positive on the macro front, particularly inflation-side, should help move the market’s need;e back to 6,800 to 7,000 levels before the year ends,’ 2TradeAsia.com said.
The market is seen moving between the 6,400 to 6,600 level this week.
