Trading is forecast to resume Wednesday on a cautious note as a string of external concerns loom in the horizon alongside the dearth of fresh catalysts to load up on equities.
On Tuesday, the stock market was closed in observance of Heroes Day but regional markets mostly rebounded after Monday’s lackluster trading in the aftermath of a weak jobs report in the United States.
On Monday, the main-share Philippine Stock Exchange index added 5.08 points, or 0.08 percent, to close at 6,732.22.
“The market looks like it will move sideways for the next few days as participants are looking for fresh leads,” said PNB Securities deputy chief Manny Lisbona. “I am seeing immediate support at 6,550 to 6,600.”
Erico Claudio, strategist at Pentacapital Investments, said the signals were mixed. On the downside, he said the recent correction in the US markets was weighing down sentiment on the local market. Concerns on the US economy and corporate earnings especially after the release of the weak US jobs data were causing external overhang. The recent depreciation of the peso, he said, could be a reflection of these developments although he noted that part of this could be due to seasonality factors.
“This is really the time when importation for capital goods picks up,” he said.
War talks by North Korea, although dismissed by military experts as mere rhetoric, also remained a concern for civilians, Claudio said.—Doris C. Dumlao