The Philippine stock market is expected to trade within a narrow range this week as investors will gauge whether upcoming data could trigger a shift in the sideways movement.
Among the economic data slated for release this week are the Philippine August remittance report, China’s third-quarter gross domestic product and the US Federal Reserve’s Beige Book—a collection of data about the current state of the US economy.
China Bank Capital Corp. managing director Juan Paolo Colet said investors would also monitor developments in the Middle East and the movement in US bond yields.
Colet said any expansion of the Israel-Hamas could affect oil prices, while the growing influence of US bond yields data could influence the Fed’s decision on policy rates.
“We see the index racing within 6,150 to 6,420 area, with potential upside bias absent any negative surprises,” Colet said.
Online brokerage firm 2TradeAsia.com expects continued thin trading until the Fed’s meeting slated before the end of October.
It said the upcoming third-quarter earnings season could also reawaken the market.
The bellwether Philippine Stock Exchange index inched up by 6 points or 0.10 percent last week despite the geopolitical tension in the Middle East and the sustained elevated US inflation.