Stocks could move sideways this week as investors wait for the release of the latest Philippines Inflation and domestic overall Product (GDP) data.
On Friday, the Philippine Champions Stock Exchange Index (PSEI) ended a six-day slide as it rose 0.85% or 53.40 points to 6,306.13, while the share of the entire stock rose 0.39% or 14.76 points to 3,751.67 points.
However, the week after week, PSEI fell 1.67% or 107.05 points from the end point of 6,413.18 on July 25.
“It turns out that a week’s rebound is not enough to reverse the ongoing market sell-off, affected by continued caution by the State of State of the State of Address (SONA) and anxiety about the new U.S. tariff rates on Philippine exports.”
“Local markets have been falling for six days until last Friday when they were snapped up during bargaining. Bearish sentiment took over last week’s impact last week as investors were frustrated by recent SONA, uncertainty about the Fed’s policy outlook and concerns about global trade. Last week’s fall, the market returned to 6,150-6,6,15,40,000 times of ockaps ockao ockao ockao op pill pill occo. In Viber news.
Mr Tantiangco said this week, the market will focus on July inflation report to be released on Tuesday (August 5) and the second-quarter GDP data to be released on Thursday (August 7).
“Including inflation figures and GDP growth is significantly faster than the 5.4% rate in the previous quarter.”
Mr Tantiangco added that investors will monitor PESO’s movement against the dollar after re-down to P58 last week.
“The rebound in local currencies may also help the market, but further depreciation may also lower the market,” he said. “Ultimately, investors are expected to be wary of the second quarter company reports.”
Mr Tantiangco said the market is expected to continue to decline if there are no positive catalysts this week. “The market showed bearish bias compared to the peak on July 14 and the low on July 17, forming a lower and lower side low. With the six-day decline, the skipper dropped below its exponential moving average for 10-day, 50-day and 200-day. The fusion/diverge line of its moving average/diverge line moves downward.”
2tradeasia.com sets PSEI instant support at 6,300 and resistance at 6,600.
“This week is inclined to hedge against the quality of inflation risks, the inclination of defensive effects, while watching the dynamics of selective consumers and the headwinds of the second quarter,” it said.
“Keep flexibility as global data declines may affect sentiment, and prudence remains critical, with thin trading volumes expected during China’s Ghost Month.” – Revin Mikhael D. Ochave
