Investors are on an extended holiday break today in the Philippines as the nation pauses to commemorate the dead.
Last week, the main-share Philippine Stock Exchange index (PSEi) gave up 245.42 points or 3.2 percent to close on Friday at 7,404.80.
During this three-day trading week, the market will likely take their cue from the ongoing Philippine corporate earnings reporting season and developments in the United States, particularly the run-up to the Nov. 8 US presidential elections, said Luis Gerardo Limlingan, managing director at Regina Capital Development.
Limlingan said he expected the PSEi’s initial support at 7,350 and resistance at 7,500.
AB Capital Securities said the PSEi continued to consolidate in a volatile manner at the 7,300 to 7,600 range and might retest the 7,600 level this week.
“In technical aspects, the key support level remains at the 7,300 to 7,350 area, while secondary support is at 6,900,” AB Capital said.
Based on the relative strength index, the market may be on a downward momentum this week.
Financial markets are set to resume trading tomorrow.
Last week, the main-share PSEi lost 245.42 points or 3.2 percent to close on Friday at 7,404.80.
The market has been on a downturn for the last seven days as US interest rate and commodity price jitters weighed down regional markets.
Compared with the previous week when President Duterte’s trip to China saw window-dressing and increased investor confidence that both led to a short-term rally, local stockbrokerage AB Capital Securities said the Chief Executive’s trip to Japan last week failed to reverse the gloomy sentiment in the market.
“Market uncertainty continues to weigh on the market, with several key events happening before the end of the year,” AB Capital said.
The local stockbrokerage said the key events to watch for would be the US elections on Nov. 8, the formal Organization of Petroleum Exporting Countries (Opec) meeting on Nov. 10 and the Federal Open Market Committee (FOMC) meeting on Dec. 14.
“The likelihood of a rate hike in the December FOMC meeting has been steadily increasing this month, settling currently at 70 percent,” AB Capital said.