Discreet trading for upcoming stocks

Investors can expect a quieter market early in the week after the US government released lower-than-expected November inflation figures, according to an analyst.

“Since the last [inflation] lived up to expectations despite being one of the highest in recent history, this could momentarily calm the market in general, ”Luis Gerardo Limlingan, Managing Director of Regina Capital Development, told the ‘Inquirer.

Reading inflation, which rose 6.8% in November, takes on greater significance as the US Fed prepares for its next policy meeting this week.

The Philippine Stock Exchange Index (PSEi), meanwhile, rose 1.94% to 7,192.17, with gains slumped on Friday after investors pocketed profits before the weekend.

BDO Unibank Inc. chief strategist Jonathan Ravelas said the rise in stock prices was due to “the relaxation of quarantine restrictions, lower virus cases and increased vaccinations” which have helped to “release pent-up demand”.

But Omicron fears and a looming interest rate hike in the United States limited the gains, he said.

Ravelas said the PSEi is still expected to trade sideways in a range of 7,000-7,300 in the near term. Bearish targets remain at 6,800 and 6,500.

—Miguel R. Camus INQ

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