The main-share Philippine Stock Exchange index recovered 2 percent last week to finish at 4,392.91 on Friday, dominated by the trading of large-cap stocks and the forthcoming revamp in the composition of the index by September 12.
The market opens this week amid a grim overseas backdrop. On Friday, the closely watched Dow Jones industrial index slumped 253.31 points, or 2.2 percent, to 11,240.26. A report that no new jobs were created last month rekindled fears of another recession.
“The PSEi meets a major resistance at 4,400 and provides a narrow trading range with support at 4,300,” said Nisha Alicer, an analyst at local stockbrokerage DA Market Securities. “The local market will continue to seek leads from abroad as investors remain cautious about another global slowdown.”
Alicer said among the near-term events to monitor were US President Obama’s speech on jobs proposal on September 7 and a two-day meeting of the Federal Reserve Open Market, also within September to discuss different options on additional stimulus.
Wall Street is closed Monday in observance of Labor Day.
Justino Calaycay Jr., a dealer at Accord Capital Equities Corp., said the market should hold the 4,270-4,290 range.
“The local market has proven it is resilient, keeping on the green despite a drop in most of its global peers. This reflects the optimism on the prospects of the broad economy despite a less-than-forecast 3.4 percent GDP [gross domestic product] growth in the second quarter,” Calaycay said.—Doris C. Dumlao