Shares seen stable ahead of inflation data

The Philippine benchmark index is expected to move sideways as investors brace for the release of February inflation data on Tuesday.

The Philippine Stock Exchange Index (PSEi) was little changed during the past week, gaining 0.09 percent or 7.28 points to finish at 6,919.59.

Weekday volumes increased to P6.4 billion while weekly net purchases made by foreigners amounted to P1.2 billion.

Last week, the Bangko Sentral ng Pilipinas said inflation likely accelerated from 2.8-3.6 percent, which was still below its 4 percent target ceiling.

Jonathan Ravelas, veteran forecaster and senior adviser at Reyes Tacandong & Co., said inflation in February likely settled at 3.1 percent.

Michael Ricafort, chief economist at the Rizal Commercial Banking Corp., said the 6,900 level remains a key battle zone for bears and bulls.

A PSEi breakout above 7,000 would see bulls targeting 7,100 to 7,500 next while immediate minor support could be found from 6,750 to 6,590. The next major support levels were pegged at 6,460 to 6,330, Ricafort said. —Miguel R. Camus INQ