Local stocks are seen trading in a tight range this week as bargain-hunting activities may be tempered by escalating geopolitical jitters.
Last week, the Philippine Stock Exchange index (PSEi) lost 48.02 points or 0.70 percent to close on Friday at 6,853.07.
“Chartwise, continue to expect the index to remain range bound between the 6,800-7,000 levels in the week ahead,” said Banco de Oro Unibank strategist Jonathan Ravelas.
In the previous week, he noted that share prices were affected by concerns over lofty valuations and political issues while the geopolitical tension in Ukraine and Israel also spooked investors.
In a research note, Citigroup said the downing of Malaysian Airlines passenger jet MH17 over eastern Ukrainian airspace on July 18—coming only hours after the announcement of new US and EU sanctions against Russia over its alleged support for Ukrainian separatist activity—had significantly escalated the tensions surrounding the Russia-Ukraine crisis.
“The incident also heightens the already elevated geopolitical risk temperature, higher than it has been in some years and likely to remain so given intensifying prospects for further conflict in Gaza and the ISIS occupation of Iraq. Doris C. Dumlao