Philippine stocks are expected to rebound this week after the last week’s decline as investors await the latest inflation report.
The Philippine Statistics Authority (PSA) is scheduled to release November inflation on Dec. 5.
Philstocks Financial Inc. research head Japhet Tantiangco said investors await the upcoming November inflation which would provide clues on the Bangko Sentral ng Pilipinas’ (BSP) policy direction.
The BSP said last week consumer goods and services prices may have risen within the 2.2 percent to 3 percent range in November from 2.3 percent in October.
Tantiangco said there could be some episodes of bargain-hunting after the index fell below the 6,700 to 6,800 support range.
“However, we also expect lingering concerns to continue weighing on sentiment. These include first, US president-elect Donald Trump’s planned protectionist policies and its impact on global economic prospects, as well as the uncertainties on the Federal Reserve’s policy outlook,” Tantiangco said.
Investors will also watch out for the upcoming S&P Global Philippines manufacturing reports and labor market data, he said.
The local bourse’s support is now at the 6,400 level, while resistance is at the 6,700 to 6,800 range.
Last week, the Philippine Stock Exchange index lost 2.45 percent to close at 6,615 Friday, while the broader all-shares index declined 1.3 percent to 3,739.
Average daily turnover improved toP5.9 billion from the previous week’s average of P5.08 billion.
Foreign investors were net sellers last week by P3.8 billion.
