Local stocks are expected to move sideways this week as investors await more leads on first-quarter corporate earnings and the result of US Federal Reserve’s next meeting on May 3.
Analysts said investors would likely stay on the sidelines this week before the more chaotic trading in the first week of May. Aside from the Fed’s meeting, the Philippines’ inflation rate in April is also scheduled to be released in the first week of May.
“The Fed’s next meeting on the second and third, plus economic indicators should prompt watchers to possibly make early chess moves in upcoming sessions,” online brokerage firm 2TradeAsia.com said.
“Better a reactive market than an inert market—more trading opportunities for the former—but practice prudence in intraday trades as funds seek stronger impetus amid the lack of visibility on broader market fundamentals,” it said.
Listed firms began releasing their first-quarter results, which could provide indication if companies would be able to sustain profitability this year despite the macroeconomic headwinds.