Inflation, Fed rate to continue weighing down stocks

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The local stock market is seen to remain bearish this week as oil prices are rising again while foreign funds continue to exit on expectations of a rate hike in the US.

“While we may see some bargain hunting following two successive weeks of decline, the general market sentiment is still seen to have a bearish bias due to the lingering macroeconomic concerns,” said Philstocks Financial Senior Supervisor for Research Japhet Tantiangco.

Meanwhile, 2TradeAsia.com said that, “Note that we are a month away from what is dubbed to be the most polarizing national elections in local history, a possible 50bps rate hike from the Fed, and full blast of first quarter earnings reports.” For stock picks, Abacus Securities Corporation is recommending those that will benefit from the increasing mobility of consumers as the number of new Covid-19 cases has remained low after the surge in January.

Convenience store owners such as Philippine Seven and Robinsons Retail should also see sales pick up with the return to work order for Business Process Outsourcing firms as well as the upcoming elections.

 

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