Share prices are expected to trade sideways this week ahead of the US Federal Reserve’s meeting.
Analysts said the Fed policy meeting on July 25 to 26 would likely take center stage as investors tune in if it would implement a 25-basis-point rate hike or keep the rates unchanged.
“If the Fed keeps its policy rate unchanged, it may push the local market higher. If the Fed raises their policy rates, however, then it may put downward pressure on the bourse,” Philstocks Financial Inc. senior research analyst Japhet Tantiangco said.
“If the local market is able to hold its position at 6,600, this will be considered as its new support while the next resistance is seen at 6,800,” he said.
Online brokerage firm 2TradeAsia.com said the Bangko Sentral ng Pilipinas would not likely mirror the Fed’s move until its scheduled meeting next month.
Investors would also listen to the State of the Nation Address by President Ferdinand Marcos, Jr. where he is expected to outline the administration’s plans to further grow the economy.
The onset of the second-quarter earnings result could also boost investors sentiments this week as the first batch of earnings report was largely positive.