The Philippine stock market is expected to return to its sideways movement this week after last week’s bargain-hunting as investors await the release of June inflation data.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said local economic data, particularly the June inflation which is slated for release on July 5 would be the main concern this week.
The Bangko Sentral ng Pilipinas (BSP) earlier said inflation rate in June 2024 likely settled within a range of 3.4 percent to 4.2 percent following May’s 3.9 percent.
Investors will also await US employment data which are scheduled for release on July 5.
Other positive factors that could sustain the upward momentum in the local stock market are the record high US stocks, stabilizing peso against the dollar and the recent move of the BSP to maintain interest rates.
The Philippine Stock Exchange index (PSEi) is expected to stay above the 6,400 level this week and re-test the 6,500 level.
The PSEi jumped 253 points, or 4.12 percent last week to close at 6,411 amid bargain-hunting and window-dressing activities.
Average turnover reached P5.27 billion, higher by 9.43 percent week-on-week, while net foreign buying averaged P2 million.
Online brokerage firm 2TradeAsia.com said a potential 50-basis-point cut in local interest rates in August could boost investor confidence.
“We underscore the risk assets remain live wires given unpredictability in numerous valuation inputs,” 2TradeAsia.com said.
