The benchmark Philippine Stock Exchange index (PSEi) is expected to trade in a narrow range for the week as investors monitor the steady release of domestic and overseas economic data. The PSEi was little-changed the past week as it gained 0.1 percent to 6,266.35.
Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., sees the PSEi trading within the 6,150 to 6,420 area this week.
“After a relatively benign week in the local market, traders will gauge whether upcoming economic data, including Philippine August remittances, China’s third quarter [gross domestic product], and the Federal Reserve’s Beige Book, can provide some bullish impetus,” he said. “Investors will also keep an eye on the intensifying Israel-Hamas war, as any expansion of the conflict could impact oil prices.
In addition, market participants will keep track of movements in US bond yields given the growing influence of this data point on how the Federal Reserve thinks about policy rates,” Colet added.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the 6,200 to 6,150 area remained a major support zone for the PSEi.