Connect with us

Business

US CPI Stocks To Watch

Avatar of Salman Ahmad

Published

on

US CPI Stocks To Watch

(CTN News) – Despite the latest US jobs report, the local stock market is expected to start weaker than expected due to the US inflation report this week.

According to Philstocks Financial Research Manager Japhet Tantiangco, the local market is expected to move sideways next week with a downward bias within the range of 5,700 support and 6,000 – 6,100 resistance.

With a price-to-earnings ratio of 15.58 times as of October 7, 2022, below its last 5-year average of 20.58 times, we may still see bargain hunting in the market.

The lack of a positive catalyst could prevent a breach of the 6,000 – 6,100 resistance range, Tantiangco said.

As well, “lingering concerns from the Philippine Peso’s weakness, inflationary risks in the Philippines, and the hawkish monetary policy outlooks of the Federal Reserve and the Bangko Sentral ng Pilipinas may weigh on sentiment.”

After the US’ strong September labor market data, concerns about further Fed rate hikes could be high this week. In addition to our balance of trade and foreign investment data, investors may also be looking for cues this week,” Tantiangco said.

“The September CPI, combined with US jobs data due late this week, will provide clues to how the Fed will move in November,” said online brokerage firm 2TradeAsia.com.

As a result of stubborn inflation, the Fed may have to extend restrictive policy until 2023… Prolonged hawkish policy increases the risk of a hard landing and lowers 2023 valuations, especially since most equity plays are currently cyclical.

Since inflation has yet to decelerate materially, this suggests some weakness in the medium-term.

According to 2TradeAsia.com, the PSEi’s push above 6,000 will depend on more accommodative market fundamentals for 2023.

At some point, inflation will come down, and doves will return, if economic cycles in the past are to be believed.

Due to coal prices remaining above $400 per metric ton, Abacus also favors Semirara.

It appears that our free cash flow to equity forecast of P5.00 per share for SCC is a conservative estimate, as previously-shelved coal plants are coming back online in Europe, which suggests continued demand for coal.

According to Abacus, the continuous purchase of SCC shares by company directors and officers also points to another special dividend this month.

SEE ALSO:

TSMC Will Spend Billions To Stay Ahead, Analyst Says

Youths Attack Texas Hooters Over Candy Bars

Great American Beer Festival Competition Honors 2022 Winners

Continue Reading

CTN News App

CTN News App

Recent News

BUY FC 24 COINS

compras monedas fc 24

Volunteering at Soi Dog

Find a Job

Jooble jobs

Free ibomma Movies