Philippine stocks are expected to move sideways, after last week’s shortened trading as regional markets remain volatile due to developments overseas.
Philstocks Financial Inc. research head Japhet Tantiangco said the local market is on a five-week losing streak, as global trade war fears take over sentiment.
Despite the market volatility, the Philippine Stock Exchange index (PSEi) has managed to stay above the 6,000 level.
“At its current position, the market is deemed to be at attractive levels. Hence, we may see episodes of bargain-hunting,” Tantiangco said.
He said hopes of further easing by the Bangko Sentral ng Pilipinas may also compel investors to take positions this week.
He said, however, worries over the global economy amid the US protectionist policies and the possibility of retaliation by other countries may continue to weigh on sentiment.
“Investors are also expected to maintain a cautious stance especially by the end of the shortened trading week as they take into consideration the uncertainties on the days the market is closed,” he said.
The local market’s support is seen at 6,000 this week. Resistance is expected at 6,400.
The PSEi inched up by 0.86 percent to close at 6,134.62 last week, while the broader all-shares index rose 0.97 percent to 3,656.99.
Average daily turnover thinned to P4.39 billion from the previous week’s average of P9.9 billion as the market was closed on Thursday and Friday.
Foreign investors were net buyers, with inflows reaching P368 million.