Stock market bulls and bears are readying for a showdown this week as the government is set to release the growth data for full year 2023.
“Investors face an eventful trading week that could determine whether the local index finally breaks out of the strong resistance at 6,700,” Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said over the weekend.
“Amid a slew of economic data and month-end trading, the market is likely to react mainly to the Philippines’ fourth quarter [gross domestic product] growth print and, more crucially, the remarks of Federal Reserve Chair Jerome Powell after US central bankers conclude their policy meeting on Wednesday,” he added.
Data from the stock exchange showed the Philippine Stock Exchange Index (PSEi) adding 2.81 percent to close the past week at 6,686.09.
The index previously saw minor selloffs as it neared the 6,700 resistance zone.
“Any indication of a US rate cut as soon as March or May this year could fuel bullish bets and propel our market higher. Conversely, any erosion in the probability of an early dovish pivot in US monetary policy could lead to further market consolidation,” Colet said.
Meanwhile, the results of a regular review of PSE indices showed no changes to the PSEi.
For the PSE MidCap Index, Petron Corp. will be added while Filinvest REIT will be removed. For the PSE Dividend Yield Index, China Banking Corp. and Synergy Grid & Development Philippines will be added while Aboitiz Equity Ventures and GMA Network will be removed.
The changes will take effect on Feb. 5 this year, according to the Philippine Stock Exchange. —Miguel R. Camus INQ