Philippine shares may retest the 6,500 level after breaking past the 6,400 level last year as traders focus on upcoming April inflation data.
Analysts said one big factor that could sustain the market’s climb is if the April inflation rate settled near the lower end of the 1.3 to 2.1 percent forecast by the Bangko Sentral ng Pilipinas.
The BSP said last week is projecting the country’s inflation rate to settle within the 1.3 to 2.1 percent range in April due to easing prices of rice, fish, fruits and vegetables as well as favorable domestic supply conditions and lower oil prices. Aside from inflation rate, investors will also continue to monitor the situation on global trade.
“Progress towards trade negotiations with the US are also expected to drive optimism in the local bourse,” Philstocks Financial Inc. research head Japhet Tantiangco said.
Likewise, continued inflow from foreign funds and the strengthening of the peso against the dollar will also be trading drivers for this week.
The bellwether Philippine Stock Exchange Index surged 2.28 percent to close at 6,411.86 last week while the broader all shares index advanced by 1.9 percent to 1,747.25.
Foreign investors were net buyers for the week with net inflows amounting to P2.15 billion.
Average daily value traded stood at P6.4 billion, higher than previous week’s average of P6.08 billion.
If the index stays above the 6,400 level, the market’s next resistance would be at 6,800.
