The local stock barometer is seen continuing to consolidate this week while awaiting developments on the government’s tax reform program, which is now being deliberated at the Senate.
Last week, the main-share Philippine Stock Exchange index (PSEi) fell by 109.84 points or 1.33 percent to close on Friday at 8,171.43 as investors pocketed gains from the recent rally to new highs.
“Some investors try to protect their gains and remained on the sidelines awaiting fresh leads on the economy, particularly on the developments of the government’s tax reform program and the progress with its infrastructure program,” BDO Unibank chief strategist Jonathan Ravelas said.
Chartwise, Ravelas said the market might range between the 8,000 and 8,300 levels in the near term. “The market needs more volume to sustain the rally and carry it to 8,500 levels. A consolidation could create the necessary base to catapult the market towards the 8,500 levels,” he added.
In a research note, Papa Securities said high volatility has been a thing of the past with the current trend pointing downward since 1987 while the PSEi was coasting along its historical volatility lows.