Share prices are expected to remain in sideways trading as the market awaits catalysts that could boost investor sentiment.
This week, First Metro Investments Corp. (FMIC) said investors will focus on key economic data, such as the Philippine budget balance and the U.S. Federal Reserve’s policy decision.
FMIC said both developments could potentially provide a stimulus for the market.
With sentiment still fragile, FMIC expects market support to be at 6,000 while resistance is at 6,200.
It noted that the market has been moving within that narrow range for the past several weeks.
“Until then the market stands still—steady yet trembling beneath faint aftershocks of caution,” FMIC said.
FMIC also maintained its year-end stock market close target of 6,900.
Last week, the bellwether Philippine Stock Exchange index (PSEi) climbed 0.86 percent, or 51.74 points, to close at 6,089.53 as investors remained cautious amid lingering global risks.
FMIC noted that renewed fears over U.S.-China trade tensions and the ongoing U.S. government shutdown tempered the local stock market’s rally.
“Markets trembled as fears from U.S. regional banks’ credit woes echoed across Wall Street, shaking global sentiment,” FMIC said.
Average value turnover thinned at P6.6 billion, down from the previous week’s average of P8.34 billion.
Jenniffer B. Austria
Foreign selling accelerated, with outflows hitting P885 million, up from the previous week’s selling of P715.3 million.
