Philippine stocks are expected to move sideways with a downward bias this week on continued bearish sentiment.
“The local market is already on a three-week decline as bearish sentiment continues to linger, driven by worries over the US planned protectionist policies and the possibility of the Philippines not hitting its 2024 economic growth target,” Philstocks Financial Inc. research head Japhet Tantiangco said.
Tantiangco said the chart also shows that the market is having a difficult time getting past the 10-day exponential moving average (EMA), indicating possibility of continued downtrend moving forward.
He said with the market’s decline, some bargain-hunting could take place in this week’s trading. “However, we do not expect a strong rally yet, as investors continue to wait for catalysts,” he said.
Among the clues being watched out for by investors are the upcoming gross domestic product data and the Federal Reserve’s first policy meeting for the year.
“A GDP growth that hits the government’s target may give the market a boost next week. However, a growth slower than 2023’s 5.6 percent may weigh on the bourse,” said Tantiangco.
The local market’s major support is still seen at 6,150 this week, while resistance is at 6,400.
The Philippine Stock Exchange index declined by 0.88 percent last week to close at 6,296. Average daily turnover weakened to P4.2 billion from the previous week’s average of P5.4 billion. Foreign investors were net sellers by P1.9 billion.