The upcoming release of fourth quarter gross domestic product (GDP) and additional data potentially confirming a downtrend in COVID-19 infections will keep investors busy this week.
The benchmark Philippine Stock Exchange index (PSEi) ended relatively flat last week at 7,293.52, reflecting lingering market uncertainties that were amplified by worries over the US Federal Reserve’s next steps in rolling back market-supporting stimulus measures.
BDO Unibank Inc. chief strategist Jonathan Ravelas said the PSEi movements would still be confined within the 7,000-7,350 range.
A surprise GDP report could lift the market while investors closely monitor announcements on COVID-19 numbers.
Meanwhile, plans by the US Federal Reserve to raise interest rates amid surging inflation dragged US markets lower the past week.
“The sentiment might sweep over here,” Luis Gerardo Limlingan, managing director at Regina Capital Development, said over the weekend.
Other investors would also be positioning ahead of the release of fourth quarter corporate earnings.
“It will be interesting to see whether power stocks will start to climb given that commodity prices continued to rise,” Limlingan said.
He added consumer stocks would also be in focus after “inflation tapered at the end [of 2021] and spending got back closer to prepandemic levels.” INQ