Slow trading seen
MANILA, Philippines—Local stocks are seen to falter this shortened trading week ahead of a long holiday break in observance of the Holy Week.
Last week, the main-share Philippine Stock Exchange index (PSEi) gained a modest 35.76 points, or 0.5 percent, to close on Friday at 6,596.96.
AB Capital Securities analyst Abbygayle Estrella said investors must “exercise astute trading” this week. Among the key catalysts for the global markets this week, she said, would be the release of US inflation and China’s first-quarter gross domestic product (GDP) along with retail sales of both countries alongside China’s industrial production data.
This week, trading will take place only for three days as
local markets will be closed on Maundy Thursday (April 17) and Good Friday (April 18).
Estrella said a lackluster performance could be expected this week as market activity would be weaker ahead of the long holiday.
“While foreign developments will still provide a heads-up, we note that the market will be needing a breather now that it has consolidated above 6,550 after failing to break the 6,650 level,” she said.
Estrella added that investors’ appetite might not be as strong this week because of the shorter trading week.
“And since climbing to its multi-month high, the PSEi’s rapid rally in the month of April should allot room for market correction. While we have been anticipating this, foreign participation helped in keeping the main index buoyed at its current levels,” she said.
“Chart-wise, the four-month uptrend is still intact although the medium-term resistance at 6,660 is not yet breached since August last year. A failed attempt will leave the market to consolidate until it regains momentum on bullish indicators,” she said.
“We advise investors to be astute because of the opportune scenarios: Prices are attractive to short, while a correction that can be considered as a pullback could be a buying opportunity,” she said.—Doris C. Dumlao
