Share prices are expected to move sideways this week as lingering concerns over the impact of geopolitical tensions on the domestic economy continue to dampen investor sentiment.
Analysts said investors are worried about the prolonged conflict in the Middle East, which has already resulted in higher inflation and interest rates, as well as the depreciation of the peso against the dollar.
“The Middle East conflict has been ongoing for more than one and a half months already with no deal in sight. This keeps global oil prices elevated, with Brent crude maintaining its ground at the $100-per-barrel level,” Philstocks Financial Inc. said.
“Fears that the conflict would re-escalate may keep investors on the edge,” the brokerage added.
Philstocks also noted that the weakening of the peso back to the 61-per-US-dollar level may discourage foreigners from investing in the country.
Likewise, the ongoing political turmoil in the Senate may divert lawmakers’ attention away from mounting economic concerns.
With the market seen holding a bearish bias, Philstocks advised investors to maintain caution with their trades.
“Chart-wise, noticeably, despite the market’s advance, it is still unable to take the 6,000 level, implying that it remains as a strong resistance,” Philstocks said.
Last week, the Philippine Stock Exchange index closed at 5,976.77, up 0.27 percent from the previous week’s close.
Average daily value traded reached P6.76 billion, lower than the previous week’s average of P7.12 billion.
Foreign investors were net buyers for the week, with inflows at P303 million.
