Share prices are expected to move sideways this week as investors maintain a cautious stance while waiting for fresh leads.
Following the release of key economic data, analysts said investors are looking for catalysts to push the benchmark index past the 6,400 level. Potential short-term drivers include the full-year earnings reports of listed companies.
Japhet Tantiangco, an analyst at Philstocks Financial Inc., said investors may also take cues from upcoming foreign direct investment data and the movement of the peso against the dollar.
“A further appreciation of the peso against the US dollar may give the local market a boost,” Tantiangco said.
First Metro Securities noted that markets will also focus on overseas data, including U.S. imports and exports, headline and core inflation, and initial jobless claims.
“Resistance is seen at around the 6,500 zone, where the index may encounter near-term profit-taking as it tests recent highs,” First Metro said.
Last week, the Philippine Stock Exchange index ended the first trading week of February at 6,390.91, up 61.94 points, or 0.98 percent, week-on-week.
The gains were largely attributed to selective buying of index stocks and steady foreign buying, which reached P1.34 billion. However, the average daily value traded weakened to P7.2 billion from the previous week’s average of P10.25 billion.
