Low-key trading for stocks ahead
Investors can expect a calmer market early this week after the US government released November inflation figures that came in lower than expected, according to an analyst.
“Since latest [inflation] came within expectation despite being one of the highest in recent history, it may momentarily calm the market in general,” Luis Gerardo Limlingan, managing director at Regina Capital Development, told the Inquirer.
The inflation reading, which rose by 6.8 percent in November, takes on greater significance as the US Fed prepares for its upcoming policy meeting this week.
The Philippine Stock Exchange index (PSEi), meantime, rose 1.94 percent to 7,192.17, with gains cut on Friday after investors pocketed profits ahead of the weekend.
BDO Unibank Inc. chief strategist Jonathan Ravelas said higher share prices were driven by “the loosening of quarantine restrictions, declining virus cases and rising vaccinations” that helped “unleash pent-up demand.”
But prevailing Omicron fears and a looming interest rate hike in the US capped gains, he said.
Ravelas said the PSEi was still expected to trade sideways within the 7,000-7,300 range in the near-term. Downside targets remain at 6,800 and 6,500.
