Philippine stocks may continue to move sideways as markets await the release of August’s U.S. consumer and producer inflation data, which could provide more support for the increasingly lower expectations of the Fed’s lowered this month, especially after a soft work report released last week.
The Philippine Stock Exchange Index (PSEI) rose 0.69% or 42.21 points to close at 6,149.13 on Friday, while the widespread all-stock index rose 0.4% or 14.79 points to 3,692.71.
However, the week’s psei fell by 6.44 points from 6,155.57 on August 29.
“Despite a fragile start in the week, the August inflation rate in September and the higher manageable August inflation and positive signs kept the PSEI above 6,100 zones.”
“The market ends with green, … as investors continue to take advantage of relatively attractive prices. In addition, the latest inflation report looks as if it is received actively, within the BSP’s (Bangko Sentral Ng Pilipinas) range and raises luis A. Luis A. Luis A. Luis A. Luis A. Luis A. Luis A. Luis A. Luising Mays in Viber.
The Philippine Statistics Bureau reported Friday that headline inflation fell to 1.5% in August from 0.9% in July, but was slower than the 3.3% recorded in the same period a year ago.
This is slightly higher than the median estimate of 1.3% in A BusinessWorld 16 analysts were polled, but within the central bank’s forecast range of 1%-1.8%.
Inflation was 1.7% in the first eight months, matching the central bank’s forecast this year.
Meanwhile, U.S. job growth weakened sharply in August, with unemployment rising to a nearly four-year high of 4.3%, confirming that labor market conditions are alleviating and sealing cases of the U.S. Federal Reserve lowering interest rates later this month.
The Labor Department’s Bureau of Labor Statistics said Friday that non-agricultural wages increased by only 22,000 jobs last month. Economists who voted by Reuters predicted a 75,000 job increase to payrolls, after a reported 77,000 gain of 73,000.
Financial markets expect the Federal Reserve to lower interest rates by one-quarter percentage point at its policy meeting from September 16 to 17, and make two more such moves in the remaining two meetings in 2025. Since December, the central bank has kept its benchmark overnight interest rate in the range of 4.25%-4.4.5%.
2tradeasia.com said this week, the market will focus on U.S. inflation reports as these could pave the way for next week’s review. It gives PSEI instant support of 6,200 and resistance of 6,500.
Mr. Lingan said the market is consolidating ahead of the Fed meeting next week. “Obviously, the market gathers under the surface of changing policy expectations and positioning.” – AGCM and Reuters
