May 7, 2024
MANILA – The upcoming inflation data is expected to largely influence the local stock market this week as anxiety continues to grip traders despite easing Middle East tensions and some listed companies’ record-high first quarter earnings.
The benchmark Philippine Stock Exchange Index (PSEi) failed to maintain the 6,700 level last week after the Bangko Sentral ng Pilipinas estimated April inflation to be higher than the government’s target range.
Latest inflation data is set to be released on Tuesday, May 7.
Philippine shares entered three sessions of losses on Friday before ending the week at 6,615.55, a 0.2-percent drop from the week prior.
“Investors are still moving in a cautious tone, evidenced by the profit taking seen last week, as well as the tepid trading activity,” said Japhet Tantiangco, research manager at Philstocks Financial Inc.
Although some traders may hunt for lower-priced shares this week, Tantiangco warned that the market “could still be dependent on our upcoming economic data.”
“Investors are also expected to watch out for our upcoming first quarter GDP (gross domestic product) report with the fourth quarter 2023 GDP growth of 5.6 percent as their benchmark,” he added.
Resistance is still seen at 6,700, while support is at 6,400.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said any gains in the local market could still be possible “especially if the markets already priced in most or all the bad news” globally.