Investors gird for clues on economic health
Investors will take their cues from a slew of data releases this week, from the upcoming gross domestic product (GDP) data to inflation indicators in the runup to the Nov. 17 rate-setting meeting of the Monetary Board.
“Since local [inflation] came out, [investors] probably will be reviewing their estimates for the next few periods,” Luis Gerardo Limlingan, head of sales at stock brokerage house Regina Capital Development, said in a text message.
He said investors would also be placing bets ahead of the latest GDP report this week and the release of more corporate earnings covering the third quarter of the year.
Bank of the Philippine Islands (BPI) said prices would remain elevated after October saw inflation rise 7.7 percent, which was the highest level since December 2008.
“We continue to see price pressures that could prevent inflation from going back to the target of the [Bangko Sentral ng Pilipinas] in the coming year, with inflation prints likely to remain above 7 percent for the remainder of the year,” BPI said.
“Given the outlook for inflation, the huge current account deficit of the country, and the hiking path of the [US Federal Reserve], there is a compelling reason for the BSP to continue hiking interest rates,” it added.
The Philippine Stock Exchange index advanced for a third straight week last week, closing Friday at 6,185.53.
Rizal Commercial Banking Corp. chief economist Michael Ricafort pegged the immediate support level at 6,080 while major resistance was seen at 6,300 to 6,400.
