Market

Analyst: Inflation-weary PH stocks facing another setback


Philippine stocks may commerce decrease forward of the discharge of native inflation knowledge and a key rate of interest determination in the US.

The benchmark Philippine Inventory Change Index (PSEi) dropped over 3.8 % the earlier week as “market headwinds [persisted],” stated BDO Unibank Inc. chief strategist Jonathan Ravelas.

These included expectations that the US Federal Reserve would ship an aggressive 50-basis level rate of interest hike to chill surging inflation. In the meantime, the BSP indicated it could think about elevating its key rate of interest in June—ahead of earlier forecasts of a rise within the second half of 2022.

Ravelas instructed the Inquirer headline inflation possible rose 4.7 % in April amid accelerating worth will increase for shopper items. The Philippine Statistics Authority will launch April inflation knowledge on Could 5.

“Heading into next week, it’s more sideways to down [for the PSEi] ahead of the Fed as we try to digest Philippine inflation, which could likely print at 4.7 percent. That’s my forecast,” he instructed the Inquirer.

“Ahead of that, we are seeing a stronger US dollar and weaker equity market,” he added.

When it comes to technical indicators, Ravelas famous the weekly shut of the PSEi at 6,731.25 “signals” a possible decline towards the 6,500 to six,000 ranges. INQ

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