October 21, 2024 | 12:00am
MANILA, Philippines — Stocks are expected to move with an upward bias this week as investors hunt for bargains and seek out fresh leads.
The 30-company benchmark Philippine Stock Exchange index gained 1.44 percent week-on-week, closing at 7,415.73 last Friday.
“The index ended on a positive note on Friday as the market priced in the 25-basis-point rate cut by the Bangko Sentral ng Pilipinas (BSP),” Unicapital head of research Wendy Estacio-Cruz said.
Estacio-Cruz said concerns about the further weakening of the peso are being cushioned by easing tensions in the Middle East.
“We look forward to upcoming economic data, including the US jobless claims and the Philippines Global Manufacturing PMI for October, which will be released on Oct. 24 and Nov. 4, respectively,” she said.
Philstocks Financial research manager Japhet Tantiangco said the local market is having a hard time getting past the 7,400 to 7,500 resistance range as the weakening of the Philippine peso together with offshore uncertainties weigh on sentiment.
With the local market still deemed attractive, Tantiangco said investors may indulge in bargain hunting this week.
He said that the dovish monetary policy outlook of the BSP is still expected to give the market support.
However, he said more catalysts could be needed for the market to get past the 7,400 to 7,500 range.
“In line with this, investors are expected to look forward to the corporate sector’s third quarter reports. Upbeat corporate results are seen as one of the possible catalysts that could drive the market higher,”Tantiangco said.
“Investors are also expected to monitor the movement of the local currency. An appreciation is expected to help in next week’s trading while a further depreciation is seen to weigh on the bourse,” he said.
The index is seen ranging between 7,400 and 7,500 levels this week, with its next resistance eyed at 7,700 if the local market gets past and holds ground above the current resistance range.
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