Sideways movement in stocks this week

MANILA, Philippines — Sideways trading may once again prevail in the local stock market this week as investors are expected to move with caution while waiting for fresh leads.

The benchmark Philippine Stock Exchange index (PSEi) finished in negative territory last Friday at 6,266.75, down 0.43 percent week-on-week, after mirroring Wall Street’s decline amid uncertainties about the US economy and the impact of tariffs.

For this week, First Metro Investment Corp. head of research Cristina Ulang sees trading moving sideways to upward, with bouts of profit-taking ahead of March inflation data.

Online brokerage firm 2TradeAsia.com said a potential early April cut is being floated, making March inflation, which will be reported on April 4, even more important as a potential indicator.

“We expect the market to bounce on bargain hunting following the selloff last week driven by the implementation of FTSE rebalancing,” Unicapital Securities Inc. equity research analyst Peter Garnace said.

He said investors are seen digesting trade balance data on the local front.

On the international front, meanwhile, he said the market would be on the lookout for the US core personal consumption expenditures price index - the Federal Reserve’s preferred inflation gauge - which may provide clues on the policy rate path.

Unicapital Securities head of research Wendy Estacio-Cruz sees the PSEi still ranging between 6,000 and 6,300 over the next five trading days.

“The market is now looking ahead to the next BSP monetary policy meeting on April 3 and the release of the March inflation on April 4. We expect the BSP to keep interest rates steady for now while monitoring the inflation trend,” she said.