FREE Market Commentary: Economist Says 6% Inflation Likely in May-June

PinoyInvestor’s “Market Views and Commentaries” highlight our partner brokers’ analysis and opinion on a range of stock market issues and events. Be ahead of other investors by reading these reports to understand how our partner stockbrokers view important issues and how these events impact the stock market.

 

NOTE: This Premium Market Commentary from PinoyInvestor’s partner stock brokerage company is given to you today for FREE. Do you want other FREE stock market and PSE reports? Simply register here. Or get a Premium Access subscription to get complete and unlimited access to all Exclusive PinoyInvestor reports! Premium Subscription only costs PHP 399.00!

 

Market Issue or Event

6% Inflation Likely in May-June, Says Economist

Inflation for this month of March will likely fall between 4.9-5.0% as the market continues to adjust from the effects of the newly passed tax reform program, according to Alvin Ang, an economist from Ateneo de Manila University. The higher inflation was also affected by other factors such as power rate hikes and fluctuating oil prices in the world market.

Inflation is also expected to peak at around 6% in May to June, mainly due to financial preparations for the start of the school year. However, inflation is expected to taper off as it approaches the latter part of 2018, as the market adjusts. Inflation is expected to settle at an average of 5% by year end.

 

Our Partner Broker’s View and Commentary

Given the expected spikes on inflation rates for the year, we expect this to be a blow for Consumer companies such as:

– JFC (Consensus Target Price: PHP 285.30)

– MAXS (Consensus Target Price: PHP P20.80)

– PIZZA (Consensus Target Price: PHP P16.40)

URC (Consensus Target Price: PHP 147.20)

as margins of these companies are likely to suffer due to higher costs of raw materials.

As for Retail companies, higher cost will be passed on to consumers, however, volume could be tapered as demand would likely be sour until the market adjusts. Our Target Prices for Retail companies:

PGOLD (Consensus Target Price: PHP P56.00)

– RRHI (Target Price: PHP 112.00)

– MRSGI (Target Price: PHP 5.00)

 

This report is prepared by PinoyInvestor’s partner broker below. Sign up to this stock broker to avail of their complete trading brokerage services:

AP Securities (formerly Angping & Associates Securities)
AP Securities (formerly Angping & Associates Securities)

AP Securities (formerly Angping & Associates Securities) is one of PinoyInvestor’s partners in delivering superior and reliable stock research reports that help Filipino investors make smart stock investing decisions! Learn more about them here.