Local stocks expected to move sideways in the first trading week of 2024 as investors await the release of latest inflation rate.
Philstocks Financial Inc. research head Japhet Tantiangco said investors might start 2024 on a cautious note in the absence of catalysts for the local bourse.
“Investors are expected to watch out for upcoming economic data for clues, primarily our inflation rate for month of December,” Tantiangco said.
He said an inflation print lower than November’s 4.1 percent and the Bangko Sentral ng Pilipinas’ forecast range of 3.6 percent to 4.4 percent could spur positive sentiment in the market.
An inflation rate higher than 4.1 percent could weigh on the local bourse, he said.
Rizal Commercial Banking Corp chief economist Michael Ricafort said the bellwether Philippine Stock Exchange index could retest the 6,700 and 7,000 levels for 2024 amid improving global economic conditions.
“The worst may have already been seen in the US/global/local financial markets in October 2023 with the topping out of US Treasury yields in the latter part of the October 2023,” Ricafort said.
He said the financial markets could improve after the better-than-expected third-quarter economic growth and November inflation rate.
The PSEi closed at 6,450.04 points on Dec. 29, down 0.78 percent from the previous week. The index also lost 1.8 percent in 2023.
