spot_img
28.1 C
Philippines
Friday, March 29, 2024

Stocks seen moving sideways this week

- Advertisement -

Share prices may move sideways with an upward momentum on expectations the Bangko Sentral ng Pilipinas will pause its monetary tightening cycle on continued decline in inflation.

The market may also take its cue from the first-quarter gross domestic product data as investors were anticipating economic growth to remain strong despite the macroeconomics headwinds.

The government is set to release the first-quarter economic report on May 11.

“The steep decline of our inflation rate to 6.6 percent last April is expected to raise expectations that the Bangko Sentral ng Pilipinas will pause with its monetary tightening in its May 18 meeting. This in turn is seen to help the market climb,” Philstocks Financial Inc. senior research manager Japeth Tantiango said.

Analysts said the expectation of rate hike pause is supported by the recent decision of the US Federal Reserve to increase rates by 25 basis points, while hinting it would soon end its hiking cycle.

- Advertisement -

The Monetary Board’s next policy meeting is set on May 18.

- Advertisement -

LATEST NEWS

Popular Articles