Cautious trading seen
LOCAL stocks are seen to trade with caution this week as investors await for fresh US data and the outcome of this week’s Federal Reserve meeting alongside local valuation concerns.
The final stretch toward the elections is likewise unnerving investors. “The market actually took off when the Supreme Court declared that Grace Poe could run. I think that investors are awaiting a clearer economic messaging from the front-runners,” said Michaelangelo Oyson, president of BPI Securities.
Last week, the Philippine Stock Exchange index (PSEi) lost 0.9 percent to end on Friday at 7,225.39.
“The week’s close at 7,225.39 continues to suggest the market will range between 7,150 and 7,400 level in the near-term, but still biased toward a test of the 7,000 levels,” said Banco de Oro Unibank chief strategist Jonathan Ravelas.
“Only a move above the 7,400 levels would suggest otherwise,” he added.
Last week, he noted that the main index had fallen due to valuation concerns as well as renewed jitters over China.
The US Federal Open Market Committee is set to hold a two-day meeting to discuss monetary policy on April 26 to 27. The market consensus was that the US central bank would keep interest rates on hold.
Other crucial data awaited by global markets this week would include an initial tally of US first-quarter gross domestic product, readings on new home sales and orders for big-ticket goods in March. Doris Dumlao-Abadilla
