January 6, 2025 | 12:00am
MANILA, Philippines — Investors are expected to trade with caution in the first full trading week of 2025, with sights set on the country’s December inflation data.
The benchmark Philippine Stock Exchange index (PSEi) capped off a two-day trading week back above the 6,600 mark at 6,603.81 last Friday, up by 1.15 percent week-on-week.
“The PSEi closed higher on Friday ahead of the release of the December inflation figure. This is expected to fall within 2.3 to 3.1 percent, which is likely to be lower year-on-year,” Unicapital head of research Wendy Estacio-Cruz said.
This week, Estacio-Cruz said the market could trade at a range of 6,300 to 6,800, with bias on the upside.
“Eyes are going to be on the Philippines’ December inflation data as this will provide clues on the Bangko Sentral ng Pilipinas (BSP)’s policy outlook,” Philstocks Financial research manager Japhet Tantiangco said.
He said that an inflation print within the BSP’s 2.3-to-3.1-percent range forecast, especially one biased to the lower end, may give sentiment a boost this week.
Aside from the inflation data, he said investors would also keep an eye on the performance of the local currency against the US dollar, with a peso appreciation seen helping lift the market while a depreciation is expected to lead to the opposite.
“Investors are also expected to look forward to the country’s November 2024 labor force survey for clues on the strength of the local economy,” he said.
According to Tantiangco, the local market has been showing positive signs after bouncing from its support at 6,400 last Dec. 20.
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