RESULTS of the second quarter gross domestic product (GDP) are likely to dictate the pace and direction of trading on the Philippine Stock Exchange this week.
In a weekly market outlook, online brokerage 2TradeAsia.com expects GDP numbers to be released on Thursday likely overwhelming earnings results.
“A few more companies will hold their first half 2016 briefings in the coming week but because they are not heavyweights, it is unlikely for them to dictate the movement of the main market barometer PSEi. What may be of more interest is the actual second quarter gross domestic product, which will be announced on Aug 18,” 2TradeAsia.com said.
“Recall that the GDP growth in the first quarter was 6.9 percent, above expectations. For the second quarter, the consensus is at 6.6 percent. With the presidential election held in May, spending may have boosted and increased the chances of a second quarter GDP to beat consensus and prior quarter’s results,” it added.
Apart from the Philippine GDP, the online brokerage said Japan’s GDP figures and the minutes of the Federal Reserve meeting will likely serve as market catalysts.
Investors may go on a buying binge in blue chip stocks, especially that “dropped quite significantly” last week.
The PSEi’s immediate range support this week is at between 7,880 an 7,920, with the resistance between 8,030 and 8,070.
On Friday, the benchmark PSEi posted a 0.32 percent or 25.49 points decline at 7,955.86. The broader All Shares decreased by 0.41 percent or 19.59 points at 4,722.82.