The Philippine stock market is expected to trade sideways this week on concerns about weakening of the peso against the US dollar and overseas developments.
Philstocks Financial Inc. research head Japhet Tantiangco said the local market was having a hard time getting past the 7,400 to 7,500 range, as the weakening of the local currency together with offshore uncertainties weigh on sentiment. The market is being hindered from continuing its bull run, he said.
“With the local market still deemed to be attractive, we may see bargain-hunting next week,” Tantiangco said.
Tantiangco said while the dovish monetary policy outlook of the Bangko Sentral ng Pilipinas is still expected to give the market support, more catalysts might be needed for the market to get past the resistance level.
Investors are also expected to look forward to the corporate sector’s third-quarter financial reports.
“Upbeat corporate results are seen as one of the possible catalysts that could drive the market higher. 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 PSE index is expected to trade between 7,400 and 7,500 this week. Resistance is seen at 7,700, while market’s support is at 7,150.
The Philippine Stock Exchange index climbed 1.44 percent to close at 7,415.73 last week while the broader all shares index improved by 1.65 percent to 4,081.52.
Average daily turnover declined to P5.9 billion from previous week’s average of P6.33 billion. Foreign investors were net buyers by P1.08 billion.
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