Earnings, alert level, Fed to weight on PH stocks

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The local stock market is seen to be swayed by corporate earnings reports, the government’s decision on whether to ease quarantine restrictions, as well as lingering concern over US interest rates.

“Next week, we expect the local market to take cues from the government’s decision on the alert levels to be implemented in the country by February 1,” said Philstocks Financial Senior Supervisor for Research Japhet Tantiangco.

While the Bangko Sentral ng Pilipinas previously said rate hikes are unlikely for the first half of 2022, which the recent inflation trend supported and affirmed, 2TradeAsia.com warned that, “there is no discounting the pressure the Fed can impose on regional central banks especially if rate hikes come sooner than expected or the balance sheet unwinding is larger than previously telegraphed.”

It noted that, “these Ayala firms are hegemons of their respective industries and are likely to set the tone for their sectors.” “The Fed’s tightening plus polarized election season only highlights the importance of hedging with assets that are resilient against external headwinds,” 2TradeAsia.com advised.

The brokerage noted that, “The last time that EMP was added to the index, the stock jumped more than 20 percent over several days .

 

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