Cautious trading to continue
The local stock market is seen continuing to trade with caution this week as investors weigh escalating tension in the Middle East and the tapering of the US Federal Reserve’s monetary stimulus.
Last week, the main-share Philippine Stock Exchange index slipped by 100.55 points, or 1.66 percent, to close at 5,974.62 on Friday.
Banco de Oro Unibank chief strategist Jonathan Ravelas said the decline below 6,000 was “driven by the lingering concerns over the geopolitical tension in Syria and the US Congress’ backing of a military strike against Syria.” He noted that foreign investors continued to move capital out of emerging markets.
“Chartwise, a retest of the 5,950 level occurred as the index struggled to stay afloat the 6,000 levels. A break below 5,950 may signal further tests towards the 5,500-5,700 levels,” he said in a research note.—Doris C. Dumlao