The Philippine stock market is expected to move sideways as negative sentiment continues to weigh on investor confidence, although recent steep declines could prompt bargain-hunting.
The 30-company Philippine Stock Exchange Index (PSEi) closed at 5,759.37 last week, a decline of 2.87 percent from the previous week’s close, failing to stay above the 5,800 support level. The broader all shares-index also fell 2.19 percent to end the week at 3,514.57.
Philstocks Financial Inc. research analyst Claire Alviar said the market may still be digesting the slower-than-expected third-quarter GDP growth while awaiting the release of foreign direct investment (FDI) data.
“A strong FDI print could help lift sentiment, but a disappointing result may reinforce the prevailing bearish mood,” Alviar said.
Concerns about a possible “AI tech bubble” would also continue to weigh on market sentiment.
Locally, the potential impact of an approaching super typhoon could further dampen sentiment, especially after the recent destructive typhoon in the Visayas, said Alviar.
Average value turnover reached P8.01 billion last week, lower than the previous week’s average of P8.7 billion.
Foreign investors turned net buyers, as stocks have been heavily sold down in the past trading days.
Foreign inflows last week reached P4.5 billion, a turnaround from P1.43-billion foreign outflows the previous week.
