THE BENCHMARK Philippine Stock Exchange index will likely remain on consolidation mode after closing flat the previous week.
“For [this week] we expect thin trading due to shorter trading days, and investors might choose to stay on the sidelines and wait for the [United States Federal Reserve’s] decision on the timing
of interest rate [adjustments],” stock brokerage firm I.B. Gimenez Securities said in a research note.
It added that the PSEi would stay within a tight range of 7,800 to 8,000, as it did the previous week. The PSEi last Friday closed practically unchanged at 7,947.25.
“The PSEi consolidated [last] week on the lack of domestic economic catalyst to move the market,” AB Capital Securities Inc. said in a separate report.
During this period, AB Capital said, the domestic equities market saw slower daily volumes and weaker foreign selling.
In terms of technical indicators, AB Capital noted that new support levels at 7,820 and 7,788 were formed.
“We advise clients to buy near support levels noted above and prudently take profits during market rally,” AB Capital said.
Specific corporate developments would help shape the market’s direction this coming week.
Moreover, AB Capital said investors would be looking toward overseas indicators, including fist quarter gross domestic product in the United States and the Federal Open Market Committee policy statement. It added that investors would be looking toward manufacturing data from China and Japan’s monetary policy statement. Miguel R. Camus