Inflation woes linger in trading
Stocks were marginally lower last week as investors stayed on the sidelines ahead of the release of February inflation data on Tuesday, March 7.
The benchmark Philippine Stock Exchange index (PSEi) shed 0.46 percent to 6,655.37 while the broader All Shares index was down 0.22 percent for the week, data from the stock exchange showed.
The Bangko Sentral ng Pilipinas (BSP) said consumer prices may have accelerated anew in February with the month’s average forecast possibly falling somewhere in the 8.5-percent to 9.3-percent range.
This raises the possibility that inflation last month would breach January’s 14-year peak of 8.7 percent despite a series of aggressive interest rate hikes implemented by the BSP.
Michael Ricafort, chief economist at the Rizal Commercial Banking Corp., said February inflation could have already reached a peak of 8.7 percent then would start to “ease gradually thereafter.”
Still, elevated inflation in recent months would be a major factor vis-à-vis the size of further rate hikes, he added.
BSP Governor Felipe Medalla said they would consider a 50-basis point rate hike during their next policy meeting should inflation come in above 9 percent.
Ricafort pegged the immediate support areas for the PSEi at 6,580 to 6,360 while “minor” resistance was seen from 6,680 to 6,770.
