Philippine share prices are expected to move higher this week due to continued bargain hunting after stocks reached oversold levels last week.
All eyes will be on the release of key economic data, including the July inflation rate and second-quarter gross domestic product (GDP), scheduled for release on Aug. 5 and Aug. 7, respectively.
“We expect the index to trade within the 6,200 to 6,500 level range this week,” said Wendy Estacio-Cruz, research head at Unicapital Inc.
Estacio-Cruz noted that several investors have shifted back to undervalued Philippine equities after stocks were beaten down for the past several trading sessions.
Analysts said investors are anticipating the release of the July inflation rate as this could provide an indication about local monetary authorities’ next policy decision.
Investors are also awaiting the release of the Philippine Stock Exchange Index (PSEi) rebalancing, which is expected this week.
Investors are anticipating the inclusion of DigiPlus Interactive Corp., which is expected to replace Bloomberry Resorts Corp. However, due to recent volatile trading of DigiPlus, there are indications that the company may not be included.
Last week, the 30-company PSEi fell 1.67 points to close at 6,306.16, while the broader all shares index dropped 1.19 percent to 3,751.67.
Average daily value traded declined to P6.3 billion from the previous week’s average of P6.85 billion. Foreign investors turned sellers, with outflows at P468.4 million.
