Philippine shares are heading into another volatile week as investors anticipate the release of the March inflation data, which is expected to reflect price surges due to Russia’s invasion of Ukraine.
“Here at home, we’ll be watching the March CPI (consumer price index), which should accelerate for obvious reasons,” Luis Gerardo Limlingan, managing director at Regina Capital Development, told the Inquirer.
Limlingan said a 3.5 to 4.5 percent increase would be reasonable and unlikely to exert added pressure on the Bangko Sentral ng Pilipinas to raise rates sooner than expected.
But he said a much larger inflation print above 5 percent “might be some cause for concern.”
Demand for gas
Limlingan added that investors would also be monitoring developments in the Russia-Ukraine conflict.
“For now, I think focus will be on how Europe will handle Putin’s demand for gas [with payment in rubles], and [their] backup strategy so they won’t be so reliant,” he said.
Meanwhile, veteran stockbroker Edward Lee’s CTS Global Equity Group Inc. is set to conclude the offer period of its P1.37-billion initial public offering on April 4. The company expects to make its Philippine Stock Exchange trading debut on April 13.
Aboitiz-led Union Bank of the Philippines, on the other hand, will price its P40-billion stock rights offering on April 6. The offer period will then run from April 25 until May 6.