Philippine stocks are expected to trade sideways this week on possible bargain-hunting, analysts said over the weekend.
The main composite index traded downwards over the past four trading weeks, following the election of US President Donald Trump and weak third-quarter gross domestic product (GDP) report.
“The market’s four-week fall has brought it to even more attractive levels, opening the possibility of bargain-hunting in next week’s trading,” Philstocks Financial Inc. research head Japhet Tantiangco said.
Tantiangco said if the current headwinds, including the weakness of the local currency persist, the rise of long-term local and US yields and concerns over the prospects of protectionist policies in the US could still present challenges. The risk of another decline is still high, he said.
Chartwise, the market’s support is seen at 6,400, and resistance at the 6,700 to 6,800 range.
Among the catalysts that could boost the market higher are the sound third-quarter earnings report of listed firms and prospects for a possible rate cut by the Bangko Sentral ng Pilipinas in its policy meeting next month.
The Philippine Stock Exchange index closed at 6,676.55 last week, down 4.31 percent, after the market traded in the red in four of five trading days. The all-shares index also declined by 2.86 percent to 3,772.80.
Foreign investors were net sellers last week, with net outflows reaching P5.96 billion. Average value turnover amounted to P6.1 billion.
