Stock market bulls and bears are readying for another showdown at the 7,000 level, with the outcome partly hinged on the upcoming release of US inflation data.
After flirting with 7,000 the past week, the benchmark Philippine Stock Exchange Index closed at 6,942.21 on Friday, a weekly gain of 0.33 percent or 7.63 points.
“Our market is poised for another attempt to close above 7,000, but whether it finally succeeds in overcoming the strong resistance at that level will depend largely on the US February consumer price index print,” said Juan Paolo Colet, managing director at investment bank China Bank Capital Corp.
“How US equity markets react to the inflation report will influence the direction of the local stock index,” Colet said.
“If we see data that bolster bullish bets of a Federal Reserve policy rate cut in June, then our market will likely benefit from risk-on sentiment and move higher this week,” he added. —Miguel R. Camus INQ