Profit reports to set trading direction
Investors are seen to take their cue from a slew of much-awaited data due this week—the second-quarter local economic report, July inflation data, MSCI index rebalancing and the local monetary policy meeting.
Last week, the main-share Philippine Stock Exchange index (PSEi) fell for the second consecutive week. It lost 0.66 percent week-on-week to close on Friday at 8,129.93.
Last week’s market decline was attributed to the escalation of US-China trade tension.
BDO chief strategist Jonathan Ravelas said the week’s close at 8,129.93 seemed to highlight a base-building consolidation. “This base-building could be gathering steam to try the 8,500 levels in the near term.”
This week, more local companies are expected to release their second-quarter earnings results, including PSEi stocks Ayala Land, SM Investments and San Miguel Corp.
The Bangko Sentral ng Pilipinas is also set to meet to discuss monetary policy on Thursday.
Security Bank chief economist Robert Dan Roces said that with second-quarter gross domestic product unlikely to make a significant rebound—
while inflation is expected to decelerate plus the US Federal Reserve’s landmark 25-basis point cut—the BSP might cut its overnight borrowing rate by 25 basis points this Aug. 8.
