Philippine stocks ended nearly flat Wednesday after falling below the 6,800 level during early trading as investors await the release of August inflation.
The bellwether Philippine Stock Exchange index went down by 0.80 point, or 0.01 percent, to close at 6,882.12, while the wider all-shares index shed 1.26 points, or 0.03 percent, to finish at 3,729.52.
Philstocks Financial Inc. said it revised its inflation projection to a range of 3.4 percent to 3.8 percent from 3.8 percent to 4.2 percent despite the impact of El Nino dry spell on food and energy prices in the first half.
It said that for the rest of the year, inflation is expected to remain within the government’s target of 2 percent to 4 percent.
“Narratives-wise, the local market is currently seen to be optimistic amid expectations that the Bangko Sentral ng Pilipinas will cut rates further and the US Federal Reserve will start its monetary policy easing soon,” Philstocks said.
“However, investors are also watching out for clues on how much policy easing would be done. Investors are also watching out for the developments in the general economy,” it said.
Philstocks also forecast a 5 percent to 15 percent earnings growth for PSE index members. The 30-company index is seen trading within a range of 6,998.71 to 7,665.26 by end-2024.
Value turnover was thin at P4.71 billion Wednesday as investors opted to stay on the sidelines while waiting for inflation data.
Foreign investors were net buyers, with net inflows reaching P147.73 million. Financial index rose 0.99 percent, while mining and oil went up by 0.29 percent and property by 0.10 percent.
Industrial slipped 1.02 percent, while services and holding firms dropped 0.20 percent and 0.09 percent, respectively.
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