China slowdown adds to list of worries of PH equity investors
The Philippine Stock Exchange index (PSEi) will trade within a narrow range this week with domestic inflation data and developments overseas, especially in China, serving as potential catalysts to break down or break outside of the range.
The PSEi closed the previous week at 6,181.06 after adding 0.33 percent. The measure is down 5.87 percent since the start of the year, data from the stock exchange showed
“This week’s market direction will be shaped by investors’ reaction to the latest US jobs report, China’s efforts to prop up its economy, and the Philippine August inflation print,” Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said over the weekend.
“Barring surprises, the index could see action within the 6,150 to 6,350 area,” he added.
He said investors would be closely monitoring US jobs data, which could influence interest rate decisions by the powerful US Federal Reserve this month.
“Market participants will also have their eyes on China, where the government is trying to manage a property crisis and a broader economic slowdown,” Colet said.
“Domestic inflation data for August will be top of mind for most investors. The expectation is that this will be higher than July’s 4.7 percent, but a steep jump could introduce fresh volatility to the market,” he added.
First Metro Investment Corp. and University of Asia and the Pacific said in their latest The Market Call research report that stocks could see continued selling pressure in September.
“With the breaching of the major support in mid-August, the negativities may continue to linger in September and prevent a major rebound,” their report showed.
“Nonetheless, the emergence of more robust macroeconomic data and milder-than-expected inflation prints for August and September could bring back investors to the equities market,” it added.
