PSEi to tread slowly after Trump, mining woes

The local stock barometer would remain lackluster this week while awaiting fresh leads such as the local inflation trajectory and the start of the fourth quarter corporate earnings season, analysts said.

Last week, the Philippine Stock Exchange index (PSEi) lost 106.97 points or 1.46 percent to close at 7,226.70 as investors assessed US president Donald Trump’s policies while local investors monitored the Department of Environment and Natural Resources’ order to stop the operations of several mines.

BDO Unibank strategist Jonathan Ravelas sees the PSEi moving between 7,000 to 7,400 this week, with investors taking cue from the latest stream of fourth quarter corporate earnings. Another key macroeconomic data to watch out for would be the February local inflation report and what tone the Bangko Sentral ng Pilipinas would adopt thereafter.

“If inflation trends higher than 3 percent, then the BSP may have to act faster in the first half,” Ravelas said.

Jose Mari Lacson, head of research at ATR Asset Management, said the market seemed to be facing resistance at current levels. This week through next week, he said the market may have a downside risk to the extent of 100 index points. —DORIS DUMLAO-ABADILLA