2 Crucial Conspiracies to Keep the Stock Market Going This Week
The upcoming fourth quarter gross domestic product (GDP) release and additional data potentially confirming a downward trend in COVID-19 infections will keep investors busy this week.
The benchmark Philippine Stock Exchange (PSEi) ended relatively flat last week at 7,293.52, reflecting continued market uncertainties that were amplified by concerns over the US Federal Reserve’s next steps to cancel market-supporting stimulus.
BDO Unibank Inc. Chief Strategist Jonathan Ravelas said PSEi moves would still be confined to the 7,000-7,350 range.
A surprise GDP report could lift the market as investors keep a close eye on announcements on COVID-19 numbers.
Meanwhile, the US Federal Reserve’s plans to raise interest rates amid soaring inflation dragged US markets lower last week.
“Sentiment could sweep here,” said Luis Gerardo Limlingan, managing director of Regina Capital Development, over the weekend.
Other investors would also position themselves ahead of the release of fourth-quarter corporate results.
“It will be interesting to see if power inventories start to climb as commodity prices have continued to rise,” Limlingan said.
He added that consumer stocks would also be in focus after “inflation eased at the end of [of 2021] and spending has moved closer to pre-pandemic levels. INQ
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