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Stocks can jump on inflation data, the G20 Summit



PSE

To B. France
Senior Rapporteur

SHARES CAN BE RELATED in the coming week in line with lower inflation expectations for the month of June and mid-term meeting of the Group's top 20 (G20) at weekends.

The Indian British Stock Exchange Index (PSEi) lost 0.71% or 57.93 points and ended on Friday at 7.999.71. The weekly base dropped by 0.7%, or 55 points, down by 2%, or by property that fell by 1.2%.

Average net foreign outflows continued to rise, rising to P1.45 billion, compared to P234 million in the previous week. However, traffic has improved on average by 42% to P10.3 billion.

– With the release from June to inflation [this] the week we expect to reach below three percent, this could provide some confidence to investors despite the fact that it might emerge from the G20 meeting, "said AAA Southeast Equities, Inc., head of research, Christopher John Mangun.

The Philippine Institute of Statistics will release official inflation data for June 5.

Bangladesh Economic Research Unit Banglo Sentral ng Pilipinas (BSP) said on Friday it expects June inflation to calm down within the range of 2.2-3%, lower rice and domestic oil banking, lower electricity prices, and weight gain. If it does, the lower estimate of the central bank would be the lowest of 2.1% in November 2016.

Meanwhile, investors will also consider meeting US President Donald J. Trump and Chinese President Xi Jinping during a summit at the top of the G20. The two state bosses, as reported, agreed to resume negotiations, although none of them gave any clarity as to whether the agreement would be forged during the year.

"Investors around the world are not sure President Trump and President Xi will reach agreement on termination of the trade war, and this anxiety can take weeks, because they understand what to do and how to position themselves in this market," Mangun said.

For online brokerage 2TradeAsia.com, investors will most likely look at the prospects for the second half of the year.

"An overview of earnings in the first semester is in place, and instructions for the second semester will be monitored. This is premature, and some predict GDP growth in the second quarter (gross domestic product) on the basis of an approved fiscal budget and higher spending, "said the online broker.

The company also noted that the listed companies would have several financing options that move forward in view of additional liquidity from the latest reserve requirement rate to 16.5% with 17% of BSPs. Fundraising funds will include, inter alia, a list of investment trusts for real estate and desirable pledges.

2TradeAsia.com put PSEi support from 7,900 to 8,000, with a resistance of 8,200 to 8,300.


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