Investors to take cue from key data
Investors will be on the lookout for local macroeconomic data this week, particularly outlooks on inflation and interest rates, after the stock market slightly rebounded amid easing Middle East tensions.
The benchmark Philippine Stock Exchange Index (PSEi) saw a five-session winning streak last week, bouncing back from weeks of declines due to the conflict between Iran and Israel.
The local bourse reclaimed the 6,600 level on Friday, owing to efforts of bargain hunters and other investors fueled by the positive first-quarter financial results of various companies, including Sy family-led BDO Unibank Inc. and the Zobels’ Bank of the Philippine Islands (BPI).
The two banks saw double-digit growth in their income in the first three months of the year, with BDO booking a 12-percent rise to P18.5 billion.
Earnings of BPI, meanwhile, increased by 25.8 percent to P15.3 billion.
Analysts have pointed out, however, that trading was largely “anemic,” proving that the rise still lacked market confidence.
Apart from predictions on April inflation and interest rates, traders will also look at US data, according to Japhet Tantiangco, research manager at Philstocks Financial Inc.
“Investors are also expected to watch out for policy outlook clues from the Federal reserve’s meeting … following the latest macroeconomic data,” Tantiangco said, adding that growth in US gross domestic product in the first quarter was “below expectations.”
