Share prices are expected to move sideways during this shortened trading week amid the continued macroeconomic headwinds.
Financials markets will be closed Tuesday and Wednesday in observance of Araw ng Kagitingan and Eid’l Fitr, respectively.
Analysts said the recent string of negative news on higher inflation rate and lower economic growth were causing concerns among investors.
“Stubborn inflation has been the theme of Q1 and a continuation is likely for Q2, while indicators are putting towards consistently higher prices for most of the first semester,” online brokerage firm 2TradeAsia.com said.
March inflation rate came in at 3.7 percent or within the government’s estimate range of 3.4 percent to 4.2 percent, but this marked the second straight month of acceleration.
Investors also fear that inflation rate would continue to rise in the coming months as prices of rice a major component of the food basket, remained elevated.
Adding to this concern is the recent spike in oil prices in the world market due to increased tensions in the Middle East and the production cut by oil producing countries.
“US manufacturing data showed strong orders despite anemic employment and high input costs. China factory data also showed record level in March. While these allay recession fears, inflation anxiety is more valid especially heading into mid-year,” the trading firm said. Jenniffer B. Austria
The bellwether Philippine Stock Exchange index tumbled 2.29 percent last week to close at 6,745.46, while the broader all-shares index lost 1.45 percent to 3,555.18.
All major sub-indices ended in the red as foreign selling accelerated to P512 million. Average daily turnover declined to P6.99 billion from the previous week’s average of P7.9 billion.
The market’s major support is seen at 6,360 to 6,500 levels this week, which help keep intact the underlying upward trend/momentum over the past five months. Resistance/target is expected at 6,800 to 7,000 levels.