Pleasant week awaits PH shares

Investors will likely react to US employment data this week following an extended winning streak despite negative economic data in the last few days.

Faster inflation and an increase in the number of unemployed Filipinos did not deter traders from buying shares, pulling up the benchmark Philippine Stock Exchange Index (PSEi) above the 6,500 level and staying in the green for three sessions in a row last week.

Data from the Philippine Statistics Authority showed that inflation quickened to 3.9 percent in May versus 3.8 percent in April due to higher prices of goods and more expensive utility bills.

Meanwhile, unemployment rate in the country rose to 4 percent in April from 3.9 percent in March. The latest data translates to 2.04 million jobless Filipinos.

“We think that the PSEi is poised to continue heading higher [this] week following a brief pause,” said Rastine Mercado, research director at China Bank Securities.

Mercado warned, however, that investors may also react to employment data from the United States that could cause “some initial volatility.”

Reports showed that US jobs and wages surged in May, both better than projected.

According to Mercado, the local bourse’s support and resistance are seen at the 6,480 and 6,600 levels, respectively. INQ