Stock market seen taking cues from inflation report

Investors are expected to take cues from the upcoming economic data this week, including the November inflation print, amid the market’s continued consolidation.

China Bank Capital managing director Juan Paolo Colet said a sustained slowdown in inflation rate could persuade the Bangko Sentral ng Pilipinas to maintain current interest rates in its policy meeting next week.

He said the signs of cooling US job market could also support view that the US Federal Reserve’s interest rate hikes are likely over.

“The market may see continued consolidation in the 6,200 to 6,300 level area and could potentially make an attempt for 6,380 in case of positive news flows,” Colet said.

Philstocks Financial Inc. research head Japhet Tantiangco said an inflation rate that is lower than 4.9 percent in October would likely spur optimism.

Tantiangco said that aside from inflation, the strong November manufacturing data and the positive cues from Wall Street on further decline in US Treasury yields would also boost market sentiments.

The market’s major support is seen at 6,000 and major resistance at 6,400 this week.

The bellwether Philippine Stock Exchange Index declined by 0.39 percent last week to close at 6,245.18 as investors succumbed to profit-taking.

All sub-indices ended in the red except for the property index. Average daily turnover improved to P5.85 billion from the previous week’s P3.3 billion.

Foreign investors were net buyers of P1.93 billion, up from the previous week’s P878 million.