PH investors anticipate choppy trading ahead

The local equities market is expected to deal with continued market volatility as investors watch out for inflation data coming from the United States.

“Given upcoming developments, we expect continuing volatility in the coming week as exacerbated by tepid trading volumes. [If] US inflation continued to run hot in August, we expect strong selling pressure to cause sell-offs as investors price-in prospects of steeper rate hikes,” China Bank Securities research director Rastine Mackie Mercado told the Inquirer.

But if US inflation would be showing signs of easing, the local market could book a strong rally, he said.

Mercado noted the local bourse “had been particularly reactive to developments, data releases that could help prompt the Federal Reserve’s policy moves.”

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., pegged the immediate support at the 6,500 to 6,600 levels.

Catalysts

On Friday, the benchmark Philippine Stock Exchange index rose by 0.19 percent, or 12.26 points, to end at 6,606, while the broader All-Shares index inched up by 0.04 percent, or 1.27 points, to settle at 3,506.47. The main-share index dropped by 1.29 percent week-on-week.

Among the major market catalysts in the past week included the weakening peso, improved jobs data and lower inflation print for August.

Last week, Globe Telecom set the price for its P17-billion stock rights offering (SRO) at P1,680 per share. Offer period is from Oct. 3 to 7.

Real estate investment trust (REIT) pioneer AREIT Inc. listed an additional 483 million shares arising from its property-for-share swap transaction.

Solar Philippines Nueva Ecija Corp., meanwhile, raked in P2.8 billion from its SRO of 1.88 billion shares. INQ