Stock market likely to trade downward

Share prices may continue to trade downward this week on thin volumes as investors are expected to remain guarded during the two-week lockdown period that starts Aug. 6.

Analysts said August, which is considered a ghost month for traders, and concerns about the spread of the Delta virus variant in the country could drive the market to test the 6,000-point level.

“Participants may have to brace for gyrations that will likely be tied to caseload spikes/improvements during the two-week lockdown, as this will drive speculations for an extension of the enhanced community quarantine to September and the government’s stimulus plan, if any,” online brokerage firm 2TradeAsia.com said.

Second-quarter earnings data will continue to trickle this week. Analysts are expecting positive results because of low-base effect from the previous year’s level when the country was first placed under a strict lockdown.

“Low-base effect will result to blown year-on-year comparisons so it may be more prudent to look at sequential growth, of even better, guidance for the remainder of the year within the context of the Delta variant,” 2TradeAsia said.