Stocks seen staging weak rally this week

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Stocks may stage a weak rally in this shortened trading week, after the benchmark index fell for five straight weeks,

Financial markets would be closed Monday in observance of the National Heroes Day.

Philstocks Financial Inc. research head Japhet Tantiangco said the market reached bargain levels and was trading at a price-to-earnings ratio of 13.64x, after declining 7.33 percent in the past five weeks, “We may see episodes of bargain-hunting given the local market’s current position,” Tantiangco said. “However, we may not see a strong rally yet as confidence towards the economy is weighed by mounting inflationary risks and a tempered outlook.”

Federal Reserve Chair Jerome Powell maintained a hawkish tone last week as he indicated during his speech at the annual central bank conference in Jackson Hole, Wyoming that the Fed was prepared to tighten further as US inflation remained high.

 

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