Index to trade within 6,000-6,300 range

MANILA, Philippines — The Philippine stock market’s immediate support this week is seen at 6,000 with resistance at 6,300, according to 2TradeAsia.

Last week, the Philippine Stock Exchange index (PSEi) rallied by 172 points to close at 6,161, up by 2.88 percent week on week. Most counters, meanwhile, gained, primed by financials and property.

Despite this though, average value turnover declined to P3.63 billion, down 7.49 percent week on week, while net foreign selling eased to P17 million on average or down by 103.77 percent week-on-week.

Factors that would affect the Philippine stock market this week include upcoming US inflation for October, which would be a vital key in projecting the Fed’s move in its December meeting, according to 2TradeAsia.

A positive factor, it said, is the Bangko Sentral ng Pilipinas’ (BSP) recent off-cycle hike which improved the foreign exchange movement.

Local inflation, meanwhile, improved to 4.9 percent in October from 6.1 percent in September while the third quarter economic growth was at 5.9 percent or above estimates.

Moving forward, 2TradeAsia said this should give policy makers, and ultimately, market participants more breathing space heading into 2024.

“Medium-term wildcards will be on potential demand gradients, especially as activity in the fourth quarter will be driven by weaker purchasing power and consumer confidence relative to last year, plus persisting oil and commodity price volatility from regional tensions,” 2TradeAsia said.

As for corporate results, 2TradeAsia said overweight sectors of property, banking and gaming were dragged by softer results in telco, mining, and consumer.

“While there may be more to unpack here, initial reviews and positive corporate guidance are indicative of better EBITDA conditions in 2024; granted, this optimism may be offset by more stringent capital management and more expensive financing,” it said.

Juan Paolo Colet, managing director of China Bank Capital Corp., for his part also noted that US October inflation would be an influencing factor.

After last week’s strong rebound, investors will look to this week’s release of US October inflation data and the policy meeting of the BSP, he