Local stocks are expected to trade within a narrow range this week as investors remain worried about higher interest rates and oil prices.
China Bank Capital managing director Juan Paolo Colet said the Philippine Stock Exchange index might trade between 6,150 and 6,350 this week as investors take a more cautious stance ahead of the release of the US August inflation data.
“A higher-than-expected rise in US consumer prices would be unwelcome for the equities market as this would pile pressure on the Federal Reserve to raise interest rates and prolong a hawking monetary policy,” Colet said.
The continued increase in oil prices after Saudi Arabia and Russia extended their voluntary production cuts is also affecting investors’ sentiment as this could keep inflation rate high.
Online brokerage firm 2TradeAsia.com said supply concerns in the agriculture sector due to recent typhoons could also lead to higher inflation for September.