PH stocks likely to trade sideways this week

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Philippine stocks are expected to trade sideways with a downward bias during the last trading days of the year as investors sentiment will continue to be

affected by trimmed rate cut projections of both the US Federal Reserve and the Bangko Sentral ng Pilipinas.

Philstocks Financial Inc. research head Japhet Tantiangco said that while the market’s recent decline could prompt bargain hunting, the fewer rate cuts signaled for 2025 could weigh on the market.“From a fundamental standpoint, the local market has been driven to more attractive levels, giving opportunity to bargain hunters. However, the trimmed rate cut projections of both the Federal Reserve and the Bangko Sentral ng Pilipinas may weigh on the market,” Tantiangco said.

The hawkish comments from the Fed and the BSP spooked the Philippine Stock Exchange last week, causing the benchmark index to drop 3.18 percent week-on-week. The PSEi ended the week at 6,406. Average value turnover declined at P6.04 billion, while foreign selling widened to P824 million from the previous week’s P52 million.

“Expect quiet sessions in the final trading week of the year, but take the time to reassess portfolio strategies/make tactical pivots to average down/lock in yields amid the recent bout of pessimism,” online brokerage firm 2TradeAsia.com said.

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