PH stocks seen trading sideways this week

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Philippine stocks are expected to return to sideways trading this week as worries about inflation rate and rising geopolitical risks weigh on the market.

Inflationary pressure and geopolitical risks are starting to permeate global markets deeper, online brokerage firm 2TradeAsia.com said.It said central banks including the Bangko Sentral ng Pilipinas are going less aggressive on previously communicated rate cut paths.Investors turned cautious about the prospects of the global economy with the expected steady decline in interest rates gradually disappearing, 2TradeAsia.com said.

“The silver lining is that direction overall remains dovish, although the magnitude and speed of cuts have scaled back significantly since Q3 and is now being reflected in forward valuations,” it said. The Philippine Stock Exchange index surged 103 points, or 1.55 percent, to close at 6,780 last week, even after the peso revisited an all-time low of 59 against the US dollar on less dovish rate cut expectations in the US and uncertainties surrounding US president-elect Donald Trump’s economic policies.

All sectors rose, led by financials and property . Average turnover declined 17.15 percent to P5.08 billion.

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