Stocks likely to climb

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After a lackluster performance of the Philippine stock market last week, investors may return this week unless new negative developments arise, including a worsening of the Israel-Hamas war, analysts said.

The 30-company benchmark Philippine Stock Exchange index is thus seen trading within the 6,150 to 6,420 level this week with potential upside bias, said Juan Paolo Colet, managing director at China Bank Capital Corp.For now, Colet said investors would be keeping a close watch on the intensifying Israel-Hamas war, as any expansion of the conflict could negatively impact local pump prices.

Possible local catalysts, meanwhile, are the upcoming data on the latest overseas Filipino remittances report due on Oct. 16; the balance of payments data due on Oct. 19; and the next local policy rate-setting meeting set on Nov. 16, according to RCBC chief economist Michael Ricafort. At the same time, a Fed rate pause cannot be completely ruled out, as well as a pause on local policy rates, especially if the peso exchange rate is relatively stable, Ricafort said.This was an improvement from the previous week’s 61.29 points decline or one percent drop, as the PSEi slightly gained for most weeks since September 2023.

On Oct. 7, Islamic militant group Hamas carried out a coordinated attack that surprised Israel and resulted in over 1,000...

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