The Philippine stock market is expected to move sideways this week with an upward bias after last week’s sellout.
Analysts said bargain-hunting on selected stocks could take place after the benchmark Philippine Stock Exchange index (PSEi) fell below the 6,100 level.
“With already four straight weeks of decline, the market is drawn to more attractive levels from a fundamental standpoint. Hence, we may see bargain hunting in next week’s trading,” Philstocks Financial Inc. research head Japhet Tantiangco said.
While sentiment would remain bearish, Tantiangco said expectations that the Bangko Sentral ng Pilipinas would cut policy rates in their upcoming meeting following the further decline in inflation last March may boost sentiment.
He said, however, the global economic concerns amid the US tariff policies are still expected to weigh on the market, tempering the potential rise next week.
“Shocks in the form of new tariff announcements from the US pose downside risks that may pull the market lower,” he said.
The market’s general trading range is still seen from 6,000 to 6,400 this week.
The PSEi declined 1.03 percent to close at 6,048.19 last week, while the broader all-shares index declined 0.64 percent to 3,643.44.
Average trading value rose to P6.9 billion from the previous weeks’ average of P4.4 billion.
Foreign selling amounted to P849 million from previous selling of P2.36 billion. With AFP