Share prices are still expected to move sideways this week despite last week’s rebound, as investors remain cautious amid a lack of positive catalysts both locally and abroad.
“Low trading volumes and lackluster sentiment reflect cautious investor positioning amid global uncertainties and local politico-economic headwinds,” said online brokerage firm 2TradeAsia.com.
While the index managed to rebound last week, the market has remained the worst-performing stock in Asia year-to-date. The index has been trading between the 5,800 to 6,500 range for the past few months.
2TradeAsia.com, however, noted the recent decline in share prices has also made stocks very attractive.
“We reiterate that many blue chip names trade at multi-year low P/E ratios, offering pockets of opportunity for discerning investors,” the firm said.
“We also noted that while the periodic slumps grab headlines, the market’s sideways grind has rewarded tactical plays in sectors like banks, gaming and utilities. A reminder that weakness in the index does not necessarily equate to a lack of tradable opportunities,” it added.
Last week, the index started the week in the red, touching a low of 5,905 due to negative sentiment over massive corruption in the government’s flood control projects and the weakening of the peso against the dollar.
However, bargain hunting took over in the last three trading days of the week to bring the index above the 6,100 level.
Value turnover thinned to P6.15 billion, lower by 32.27 percent week-on-week.
Foreign flows reversed to an average net selling of P857 million from last week’s P1.59 billion net buying.
