The local stock market will likely trade sideways this shortened trading week with upward bias on easing concerns about the trade war.
Analysts said investors will closely watch the trade negotiations between United States and China, which resumed trade talks over the weekend as well as upcoming senatorial elections.
“Investors are also expected to watch out for developments with respect to trade talks with the US, with signs of progress to be taken by the market positively,” Philstocks Financial Inc. research head Japhet Tantiangco said.
Likewise, hopes of aggressive monetary policy easing by the Bangko Sentral ng Pilipinas for the rest of the year following easing inflation and lower-than-expected economic growth data are still expected to provide support to the local market.
“The local market managed to extend its rise last week, and in the process, get past the 6,400 resistance level. Currently, the market is seen to be testing its 200-day exponential moving average,” Tantiangco said.
If the market is able to hold its ground at 6,400, Tantiangco said this will be the new support while next resistance would be at 6,600.
The Philippine Stock Exchange index jumped 0.72 percent to close at 6,458.20 last week while the broader all shares index advanced 0.58 percent to 3,762.85.
Average value trading improved to P6.8 billion from the previous week’s level of P6.44 billion.
Foreign investors were net buyers for the week, with inflow reaching P1.73 billion.