Stock investors tuned to local data, including inflation

Stock investors will keep an eye out this week for key data, including inflation. INQUIRER FILE PHOTO

MANILA, Philippines –  Investors will keep an eye on key economic data at home this week after getting an energy boost from potential trade talks between the United States and China.

Wendy Estacio-Cruz, research head at Unicapital Securities Inc., said over the weekend that the benchmark stocks index may have room for a climb this week, especially with expectations that the economy grew faster.

READ: PSEi rises on Beijing’s trade talk hints

First-quarter gross domestic product growth rate data is set to be released on Thursday.

Last Friday, the Philippine Stock Exchange Index (PSEi) climbed by 2.28 percent week-on-week to 6,411.86 after China hinted at “evaluating” possible trade talks with the United States.

Beijing had been hit hardest by Washington’s “Liberation Day” tariffs, and was the only country exempted from US President Donald Trump’s 90-day pause.

At the same time, Cruz noted that April inflation data, scheduled for release on Wednesday, would likewise be a key catalyst for the week.

Results of an earlier Inquirer poll of 10 economists showed inflation likely quickened in April due to higher electricity bills and train fares, offsetting lower oil and food prices.

The poll yielded a median estimate of 1.9 percent for the consumer price index (CPI) in April, faster than the 1.8-percent CPI in March.

First-quarter corporate earnings results may also have a hand in the index’s movement this week, according to trading platform 2TradeAsia.com.

“Sectors with pricing power and leverage to household spending—namely consumer staples, retail and discretionary—should have some lift as campaign spending spills over into Q2 (second quarter) top lines,” it said in an advisory.

Cruz expects the PSEi to continue trading within the 6,300 to 6,500 range, “with a bias toward the upside.”

2TradeAsia, meanwhile, sees support at 6,000 and resistance at 6,400, depending on inflation data results.