The Philippine stock market is expected to move sideways with an upward bias this week amid improving economic conditions.
Analysts said the overall optimism improved, driven by prospects of monetary policy easing following the better-than-expected February inflation rate.
Analysts also said the appreciation of the peso against the dollar boosted investor sentiment.
“We expect optimism to remain driven by prospects on the BSP’s monetary policy easing following our latest inflation print, and our robust Q4/FY 2024 corporate results. The [eso’s appreciation, if it continues, is also expected to help,” Philstocks Financial Inc. research head Japhet Tantiangco said.
The local bourse could also move sideways as investors might take profits after the index rallied for five straight trading days last week.
Investors will also watch out for the release of data on foreign direct investments and dollar remittances this week.
Tantiangco said, however, the uncertainties with respect to the US’ trade policies woiuld continue to a key downside risk to the market.
The Philippine Stock Exchange index surged 5.01 percent to close at 6,298.29 last week, while the broader all-shares index advanced 2.55 percent to 1,691.46.
Foreign investors were net buyers last week, with net inflows reaching nearly P400 million.
Average daily value traded reached P7.62 billion, slightly lower than P8.34 billion from the previous week’s average.
