Share prices are expected to trade sideways with an upward bias this week as investors continue to search for bargains while awaiting the release of December inflation data.
Japhet Tantiangco, research head at Philstocks Financial Inc., said bargain hunting may continue in the local market as investors look forward to upcoming inflation and labor market data.
Tantiangco noted that a benign inflation print and strong labor data could boost sentiment, as both are seen as vital to supporting household consumption in the local economy.
In addition to economic data, investors are expected to monitor the movement of the Philippine peso. Despite a strong start last week, Tantiangco said the index remains at bargain levels, trading with a price-to-earnings ratio of 10.3, significantly below its 2020-2024 average of 17.3 and the regional average of 18.4.
“The local market is coming off a losing year under tepid trading and heavy net foreign selling,” Tantiangco said. “This reflects low investor confidence toward the local bourse amid lingering issues and their effect on our economy’s performance. On a positive note, the local market has been holding its position above the 6,000 level.”
Last week, share prices jumped 1.36 percent to close at 6,135.06. The market was open for only one trading day last week.
