The Philippine Stock Exchange Index (PSEi) for this week is seen to have an uptrend performance. The US non-farm payroll report could influence a possible hike of the PSEi, although investors still have security concerns following the bombing incident in Davao on Friday.
Here are three fast facts about the performance of the local stocks from Sept. 5-9.
1. BPI Asset Management said the PSEi may hover between the 7,650 and 7,920 levels this week. The lower than expected US non-farm payroll jobs may delay the interest rate hike from the US Federal Reserve (Fed).
The US Department of Labor's Bureau of Labor Statistics (BLS) issued its Employment Situation Summary stating that only 151,000 jobs where added for the month of August. The expected number was 180,000.
“The US non-farm payrolls report that fell below expectation and the slower annual wage growth rate would further delay interest rate hike in the US and will continue to support the local market to rebound together with the commodities as US dollar weakens through this week,” Business World reported Aniceto K. Pangan, Equities Trader at Diversified Securities, Inc., as saying.
2. Investors are also considering talks from other developing economies. The results from these meetings will also influence the Fed’s decision to increase interest rate.
Pangan added that the Fed will also consider other volatilities arising from other events. These include meetings from Bank of Japan (Sept. 20), European Central Bank (Sept. 8), Bank of England (Sept. 15) and Organization of the Petroleum Exporting Countries (OPEC) (Sept. 26-28).
The Fed is set to meet on Sept. 20-21. It is expected to bring out its decision regarding the anticipated interest rate hike.
3. Uncertainties, however, still prevail following the declaration of President Rodrigo Duterte on the state of lawlessness.
“The first two trading days will be crucial for the index as it needs to sustain its hold above 7,800 to prevent another round of correction back to its 100-day moving average,” Luis A. Limlingan, Managing Director at Regina Capital Development Corp., said.
What do you think of the local stocks' performance from Sept. 5-9? Let us know in the comments section below.