Philippine shares inched up on Monday ahead of the release of August US consumer price index (CPI) data that could affect the US Federal Reserve’s policy decision this month.
The benchmark Philippine Stock Exchange index (PSEi) went up by 10.80 points or 0.17% to end at 6,233.74 on Monday, while the broader all shares index rose by 3.22 points or 0.09% to close at 3,363.45.
“Philippine shares were bought up as investors look to a fresh new batch of economic data that could influence price action activity. For the week ahead in the US, investors are looking forward to key inflation data,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.
“Local stocks moved sideways with no major catalyst to move the market either way. Investors also opted to stay on the sidelines, anticipating the release of US CPI data, which is expected to provide clearer insights into the direction of US monetary policy,” AB Capital Securities, Inc. Vice-President Jovis L. Vistan said in a Viber message.
August US CPI data will be released on Wednesday.
The US CPI rose 0.2% in July, matching June’s gain. On an annual basis, the CPI advanced by 3.2%.
The US central bank raised borrowing costs by 25 basis points (bps) in July, bringing its target rate to a range between 5.25% and 5.5%.
It has hiked rates by 525 bps since it began its tightening cycle in March last year.
The Federal Open Market Committee will hold its policy meeting on Sept. 19-20.
“Meanwhile, it’s going to be a relatively quiet week for us here in the Philippines. The only economic data due for this week is the remittances [report],” Mr. Limlingan added.
The Bangko Sentral ng Pilipinas (BSP) is scheduled to release July remittance data on Friday.
In June, cash remittances coursed through banks inched up by 2.1% to USD 2.81 billion from USD 2.75 billion in the same month last year, BSP data showed.
For the first six months of 2023, cash remittances rose by 2.9% to USD 15.79 billion.
Sectoral indices were split on Monday. Mining and oil climbed by 188.54 points or 1.87% to 10,266.96; industrials went up by 94.04 points or 1.06% to 8,910.16; and services rose by 4.17 points or 0.27% to 1,538.10.
Meanwhile, financials fell by 5.20 points or 0.29% to 1,788.26; property declined by 2.77 points or 0.1% to 2,586.13; and holding firms dropped by 4.32 points or 0.07% to 5,979.78.
Value turnover went down to PHP 3.62 billion on Monday with 639.89 million shares changing hands from the PHP 3.85 billion with 445.34 million issues seen on Friday.
Decliners outnumbered advancers, 103 to 95, while 41 names closed unchanged.
Net foreign selling rose to PHP 504.93 million on Monday from PHP 347.89 million on Friday.
For this week, Mr. Vistan placed the PSEi’s support at 6,120 and resistance at 6,350. — S.J. Talavera
This article originally appeared on bworldonline.com