Market participants are on edge as US inflation data and local policy rate announcements for this week are expected to determine the trajectory of the local stock market.
According to China Bank Capital Corp. Managing Director Juan Paolo Colet, “after last week’s strong rebound fueled by positive surprises in local inflation and GDP prints, investors will look to this week’s release of US October inflation data and the policy meeting of the BSP (Bangko Sentral ng Pilipinas) to determine the direction of stocks.”
“If US consumer price pressures show clear signs of further easing and the BSP keeps its policy rate steady, then market participants could build a cautiously bullish case for equities,” he explained.
Online brokerage firm 2TradeAsia.com shared that the positive local inflation in October, and the third quarter GDP “should give policy makers, and ultimately, market participants, more breathing space heading into 2024.”
It also noted that the sustainability of the gains in the market will be tested, but “more positive surprises in data plus reallocation and window dressing come December should help.”
Investors are advised to “monitor volume changes as the market fears for 2024.”
Abacus Securities Corporation has given the stocks of the International Container Terminal Services, Inc: (ICTSI) a “buy” rating, saying that it maintains a positive outlook on the firm, anticipating new port consolidations and tariff adjustments next year, despite reporting lackluster third quarter earnings.
SM Investments Corporation also received a “buy” rating from Abacus m, citing its “earnings quality and exposure to the consumer sector as factors that should allow its stock to outperform in the long run.”
Meanwhile, Abacus highlighted ACEN Corporation’s slightly volatile earnings, with notable fluctuations to persist in the near-to-medium term before “consistent profitability” is attained. Thus, it advised investors to “wait for dips before adding or initiating a position on the stock.”
D&L Industries Inc. got a “buy” rating from both Abacus and COL Financial, with the latter saying the firm “remains in prime position to capitalize on the reopening of the economy,” with long-term growth prospects remaining attractive for favorable sales and margin expansion.”
Abacus noted that while D&L’s stocks may not fully rise even with key businesses recovering and sales improving, it remains “confident in the company’s outlook once its Batangas plant ramps up operations which will drive its exports and overall sales moving forward.”