Philippine stocks are expected to trade sideways this week after last week’s shortened trading week as investors await the release of key March inflation rate.
Online brokerage firm 2TradeAsia.com said in its weekly stock market outlook Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. already hinted that March inflation rate may be around 3.9 percent, higher than February’s 3.4 percent. It said the higher inflation could be due to the sharp movement in food and transportation and as higher power/energy demand with the early onset of the summer season.
“We remain neutral on any earlier than mid-rate cycle changes for these reasons is expected to hover between 6,800 and 7,000 points this week.The PSEi ended at 6,903.53 last week, up 0.31 percent week-on-week while the broader all shares index finished at 3,607.51, up 0.55 percent from a week earlier.
Average daily turnover improved to P7.92 billion, as foreign investors were net sellers by P2.35 billion.