The stock market is expected to continue its sideways movement with an upward bias amid the improving economic outlook.
Analysts said the deceleration in March inflation rate is a positive sign that monetary authorities could take a pause from raising interest rates by next month if April inflation rate falls further. Analysts said while the US Federal Reserve’s next policy action could also affect the Bangko Sentral ng Pilipinas’ policy action, this could be less of a factor as local inflation rate started to ease.
“The BSP chief expressing support for possible rate hike pause, and even rate cut if inflation permits, coincided with the International Monetary Fund’s latest upgrade in Philippines’ growth outlook,” online brokerage firm 2TradeAsia.coms said.
The bellwether Philippine Stock Exchange index was relatively flat to 6,481.91 last week, while the broader all-shares index slipped 0.17 percent to 3,480.77.
Average value turnover improved to P5.63 billion, as foreign investors became net buyers for the week by an average of P243 million.