Macro data, earnings to guide investors

MANILA, Philippines — The local stock market could see a turnaround from last week’s lackluster performance with an array of macroeconomic data and corporate earnings results expected to keep investors engaged this week.

The Philippine Stock Exchange index (PSEI) managed to finish on a positive note last Friday, snapping a six-day losing streak as investors snapped up cheaper stocks after several sessions in the red.

Week-on-week, however, the PSEi was lower by 1.67 percent.

“Investors shifted back into undervalued Philippine equities, prompting a recovery from oversold levels,” Unicapital Securities head of research Wendy Estacio-Cruz said.

This week, Estacio-Cruz expect the index to trade within the 6,200 to 6,500 range as all eyes will now be on the release of the July inflation data and second quarter gross domestic product (GDP) growth figures scheduled for Aug. 5 and 7, respectively.

Philstocks Financial research manager Japhet Tantiangco said the market’s movement in the coming days would depend on how satisfactory the upcoming macroeconomic data will be.

He said a well contained inflation figure and a GDP growth print significantly faster than the prior quarter’s 5.4 percent may give the market a boost this week.

Further, Tantiangco said investors are also expected to monitor the movement of the peso, with the local currency’s rebound seen helping the market, while a further depreciation may bring it lower.