Shares prices are expected to resume sideways trading this week on risk off sentiments due to lingering concerns about a possible downturn in the global economy.
Analysts said while the Philippine Stock Exchange Index tested the 6,400-point level last week, investors were quick to cash-in on gains. This indicates that rallies are a temporary upside in an otherwise persistently down market.
Online brokerage firm UTrade Inc. said market gains were capped last week on worries over rising inflation and global economic headwinds.
Finance Secretary Benjamin Diokno last week said the domestic economy would grow by 6.5-7.5 percent this year, lower than the earlier target of 7 percent to 8 percent.
While global commodity prices and oil prices are easing, which could help reduce inflation pressures, factors that have caused food and oil prices to go up significantly remain.
The PSEi last week rebounded 3.2 percent to close at 6,361.82 on bargain hunting, while the broader All Shares Index rose 2.1 percent to 3,410.76.