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Monday, March 4, 2024

Stock market likely to move sideways this week

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Local stocks are expected to move sideways this week as investors await the release of the US inflation report and the results of the Bangko Sentral ng Pilipinas’ policy meeting this week.

“If US consumer price pressures show clear signs of further easing and the BSP keeps its policy rate steady, then market participants could build a cautiously bullish case for equities,” China Bank Capital managing director Juan Paolo Colet.

Economist expect the BSP to keep its policy rate unchanged in its next policy meeting on Nov. 16 after delivering an off-cycle 25-basis-point hike in October to curb inflation.

Online brokerage firm 2TradeAsia.com said the slower growth in October inflation and the positive 5.9=percent third-quarter economic growth could provide the government’s economic planners and market investors breathing space heading to 2024.

Investors are also monitoring the US October inflation which would provide clues on the US Federal Reserve’s move in its December meeting.

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“Medium-term wildcards will be on potential demand gradients, especially as activity in the fourth quarter will be driven by weaker purchasing power and consumer confidence relative to last year, plus persisting oil and commodity prices volatility from regional tensions,” 2TradeAsia.com said.

The bellwether Philippine Stock Exchange index surged 172 points, or 2.88 percent, last week to close at 6,161 on lower-than-expected October inflation and higher-than-expected third-quarter GDP growth.

The average daily value turnover declined 7.5 percent week-on-week to P3.63 billion.

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