Global developments will likely affect the movement of Philippine stocks this week, with the US Federal Reserve meeting on June 11 to 12 to set the tone of monetary policy.
“Key economic data releases plus the US Fed policy meeting will be the front and center next week. The highly anticipated Fed meeting on the 11th to 12th, plus inflation reports for May should drive activity in the capital markets,” online brokerage firm 2TradeAsia.com said.
Local inflation rate remained high at 3.9 percent in May, up from 3.8 percent in April.
This brought the five-month inflation to 3.5 percent, still within the government’s target of 2 percent to 4 percent for the year.
2TradeAsia.com said while the Bangko Sentral ng Pilipinas (BSP) hinted a possible rate cut in the second half of the year, interest rates would likely remain unchanged when the BSP holds its policy meeting later this month.
Local investors will also continue to monitor foreign exchange rate as the local currency depreciated 0.02 percent week-on-week to 58.52 against the US dollar.
BDO Unibank Inc. said in its weekly outlook while the peso may not touch the record-low of 59 a dollar, the peso may continue to be influenced by US economic data.
The bellwether Philippine Stock Exchange index jumped 85 points, or 1.33 percent, week-on-week to close at 6,518 on Friday.
Average turnover declined 37 percent to P5.4 billion, while foreign selling slowed to P419 million.
