Caution is the watchword market traders may be guided by in the weeks ahead.
Local stock market brokerage DA Market said that, aside from the recent State of the Nation Address of President Aquino, the market’s performance this week could be influenced by local factors as a stream of second quarter earnings reports flowed out.
“While last week’s concerns on geopolitical issues have settled, the issues remain to be an ongoing concern, and any negative developments that may ensue can cause a drag on positive local market performance,” DA Market said.
“On concerns of expensive valuations, we advise investors to stay alert when the market approaches resistance levels and to keep an eye on earnings results for confirmation of higher upsides. On concerns of heightened risk, we advise investors to take risk factors and developments into consideration when the market tests supports,” it added.
The stock market will reopen Wednesday after the nation on Tuesday observed Eid’l Fitr or the Feast of Ramadan. Doris C. Dumlao