Philippine stocks are expected to move sideways this week, with an upward bias on the back of expectations the August inflation print will ease from 4.4 percent in July.
The Philippine Statistics Authority is scheduled to release the inflation data on Sept. 5.
“The market could move with an upward bias on the back of expectations that the Philippines’ August inflation print which will be released on Thursday would be lower than July’s 4.4 percent,” Philstocks Financial Inc. research head Japhet Tantiangco said.
“Confirmation of the said expectations may also somehow give the market a boost on the latter part of the week,” he said.
Tantiangco said investors would also take cues from other economic data including the strengthening of the peso against the US dollar, the S&P Global Philippines’ Manufacturing PMI for August and the Philippines’ labor force figures for July.
The market’s major support is still seen at 6,700 to 6,800 range for this week.
The bellwether Philippine Stock Exchange index touched the 7,000 level several times last week, but closed lower amid profit-taking.
The PSEi ended the week at 6,897.54, down 0.93 percent week-on-week, while the broader all-shares index finished at 3.742.81, down 0.18 percent. The PSEi was up 4.4 percent for the month of August.
Average daily value turnover improved to P8.02 billion, up from previous week’s level of P6.9 billion.
Foreign investors were net buyers by P2.16 billion, lower than previous week’s buying of P6.87 billion.
