Connect with us

Hi, what are you looking for?

Economy

PSEi to move sideways before key data release

PHILIPPINE STOCKS may move sideways this week as the market awaits the release of June inflation report and other economic data.

The Philippine Stock Exchange index (PSEi) declined by 43.42 points or 0.66% to 6,468.07 on Friday, while the broader all shares index went down by 12.93 points or 0.37% to close at 3,452.96.

Week on week, the PSEi rose by 74.52 points or 1.17% from its close of 6,393.55 on June 23.

“Philippine shares ended the semester just below the 6,500 level… Here at home, the main focus was on window dressing with the first of the year drawing to a close, on the back of a narrower May budget deficit,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan in a Viber message.

“The local market managed to bounce back last week as bargain hunters took advantage of the preceding week’s decline. This in turn has brought it back to its 6,400-6,600 range,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

For this week, investors expect local shares to move sideways ahead of the release of local economic data.

“[This] week, the local market’s movement may depend on the upcoming economic data. Investors may take cues from the upcoming June S&P Global Philippines Manufacturing PMI (purchasing managers’ index) and the May labor force survey for clues on the strength of the local economy,” Mr. Tantiangco said.

“Strong figures may boost sentiment, which in turn could bring the market higher. Investors are also expected to watch out for the Philippines’ June inflation rate. A further slowdown from May’s 6.1% may also spur optimism [this] week,” he added.

The Philippine Statistics Authority will release June inflation data on Wednesday, July 5.

A BusinessWorld poll of 17 analysts yielded a median estimate of 5.5% for June inflation, near the lower end of the central bank’s forecast range of 5.3% to 6.1% for the month.

If realized, this would be slower than the 6.1% in May and will be the fifth consecutive month of easing inflation.

Still, June would mark the 15th straight month that inflation surpassed the Bangko Sentral ng Pilipinas’ 2-4% target for the year.

“In terms of fundamentals, investors will be digesting a number of economic data releases this week, with the Philippine June inflation print being the most keenly awaited for signs of a sustained relief in consumer prices,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet likewise said in a Viber message.

“A large decline in local inflation, especially one that overshoots median expectations, could spur bullish trades” Mr. Colet added.

For this week, Philstocks Financial’s Mr. Tantiangco placed the PSEi’s support at 6,400 and resistance at 6,600. — A.H. Halili

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

By Luisa Maria Jacinta C. Jocson, Reporter THE NATIONAL Government’s (NG) budget deficit widened to P133 billion in August as revenues declined, data from...

Economy

THE GOVERNMENT is planning to launch US dollar-denominated retail Treasury bonds (RTB) on Tuesday, Finance Secretary Benjamin E. Diokno said. “We will launch the...

Economy

By Keisha B. Ta-asan, Reporter SUPPLY SHOCKS to inflation and a weaker peso against the dollar may prompt the Bangko Sentral ng Pilipinas (BSP)...

Economy

By Bernadette Therese M. Gadon, Researcher THE PHILIPPINES’ largest banks saw asset and loan growth ease in the second quarter, reflecting the impact of...

Economy

PROJECTS and activities to be funded via the issuance of “blue bonds” should support specific items under the United Nations Sustainable Development Goals (UN...

Economy

1 of 5 VERSACE TOM FORD PRADA EMPORIO ARMANI FENDI MILAN — Italian luxury label Dolce & Gabbana (D&G) presented a mainly black and...

You May Also Like

Top News

As the world seeks sustainable and energy-efficient solutions for heating and cooling, the heat pump market is experiencing a significant surge. According to the...

Investing

The Toto site’s user-friendly interface makes it easy for both beginners and experienced gamblers to navigate through the various features. “¸ÔÆ¢Æú¸®½º site is a...

Investing

Almost 100 jobs are thought to be under threat at smart home energy technology manufacturer myenergi. The Grimsby firm, named one of the UK’s...

Investing

The number of small businesses planning to increase prices to their customers is set to rise dramatically this quarter, further fuelling inflationary pressures. A new quarterly analysis of...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.