FDI, remittances data to shape PSEi this week
Investors will be looking forward to key economic data coming out this week to steer the local bourse, following last week’s “disappointing” economic growth results.
Wendy Estacio-Cruz, research head at Unicapital Securities Inc., said traders would now shift their attention from US tariffs to upcoming data releases.
These include May data on foreign direct investments on Wednesday and June data on cash remittances. They will come out on Friday and are both crucial indicators of the Philippine economy.
This comes after the Philippine Stock Exchange Index’s (PSEi) 0.53-percent week-on-week gain to 6,339, despite average value turnover slipping by 1.3 percent to P6.23 billion.
Last week was a mix of tariff uncertainty and frenzy over a near six-year low inflation print.
However, Cruz pointed out that a slower-than-expected growth of gross domestic product in the second quarter—5.5 percent from 5.4 percent in the first quarter—dampened overall sentiment.
At the same time, trading platform 2TradeAsia.com pointed out that the clash between US President Donald Trump and Federal Reserve chief Jerome Powell may threaten the US central bank’s independence and prospects of rate cuts.
The Bangko Sentral ng Pilipinas (BSP) often mirrors the policy move of the Fed. For its part, the BSP has hinted at two more possible rate cuts this year, while analysts expect the Fed to slash rates only once.
The last batch of first-semester earnings reports will likewise influence the bourse this week, 2TradeAsia said. It sees the PSEi’s immediate support at 6,300 and resistance at 6,600.
