August 12, 2024 | 12:00am
MANILA, Philippines — The stock market hopes to sustain its momentum this week as investors seek direction on the Bangko Sentral ng Pilipinas (BSP)’s monetary policy decision.
The benchmark Philippine Stock Exchange index finished last week on a high note, recovering from its early week collapse.
It closed at 6,647.80 last Friday, up by 0.64 percent week-on-week.
“The local market bounced back last week after hitting its 6,400 support level, eventually ending the week with a 0.64 percent gain,” Philstocks Financial research manager Japhet Tantiangco said.
“In addition, the market managed to get back above its 10-day, 50-day, and 200-day exponential moving averages. However, trading has remained anemic as seen in the thin value turnovers,” he said.
This week, Tantiangco said the BSP’s monetary policy decision is expected to be the focus of the local market.
He said a policy rate cut is expected to sustain the local market’s upward momentum while an unchanged policy rate might lead to a market decline.
Investors are also expected to monitor the developments at Wall Street, according to Tantiangco.
“A further easing of recession concerns is seen to help in lifting market sentiment while a worsening of the said concerns is expected to weigh on the market. Investors may also take cues from the upcoming foreign direct investment and OFW remittance data, as well as from second quarter corporate results,” he said.
In a report, 2TradeAsia.com said more volatility should be expected in the market in the coming sessions.
“Investors psyche is expected to remain glued to the BSP’s move – an off-cycle rate cut will rouse animal spirits in equities, but pragmatism dictates a more neutral move is more likely in light of current data,” it said.
Support is seen at 6,400 to 6,500 while resistance is seen at 6,700 to 6,800.
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