Share prices are expected to trade sideways with an upward bias during this shortened trading week as investors await monetary policy decisions from the U.S. Federal Reserve and the Bangko Sentral ng Pilipinas (BSP).
Financial markets are closed Monday.
First Metro Securities Corp. (FMIC) said the shortened trading week may keep volumes subdued, with focus on key data releases.
Aside from the U.S. Fed and BSP’s policy meetings, the market will react to the November inflation rate. The rate eased to 1.5 percent, within the government’s forecast, strengthening expectations that the BSP will reduce interest rates during its meeting on Dec. 11.
FMIC added that investors will also monitor the release of the country’s unemployment, foreign direct investments, and industrial production reports.
Last week, the Philippine Stock Exchange Index (PSEi) slipped by 1.21 percent week-on-week, closing lower by 73.02 points.
Foreign selling and macroeconomic uncertainty pushed the index below the 6,000 level.
Foreign investors were net sellers, with outflows totaling P4.86 billion.
Average daily value traded weakened to P5.2 billion, down from the previous week’s P9.3 billion.
“Global volatility continued as markets digested shifting Fed rate cut expectations, softer U.S. data and crypto weakness, keeping equities broadly choppy,” FMIC said.
For this week, market support is between 5,700 to 5,800, while resistance is at 6,300.
