Stock index to consolidate around 8,000
The benchmark Philippine Stock Exchange Index (PSEi) ended the previous week relatively flat as worries over a trade war between the United States and China capped any large gains. The PSEi was down about 0.11 percent to 7,979.83 during the holiday-shortened week.
In the coming days, movements will be driven by external events as well as expectations on earnings and the upcoming inflation report.
“We’re not seeing a rosy picture, but it’s not a gloomy picture as well,” said Astro Del Castillo, First Grade Finance Inc. managing director. He said the PSEi could consolidate around the 8,000 level in the near term.
He said that investors remained risk-averse because of external events.
“We are already in a bear market, but the market is also oversold. It is due for a bounce,” Del Castillo added.
Luis Gerado Limlingan, managing director at Regina Capital Development, said the weakness of the PSEi was also heightened by investors booking profits. He noted that this could continue in the coming days.
“Looking at technical indicators, and assuming no other significant macroeconomic events happen during the holidays, the index might see a continuation of its downtrend,” Limlingan noted. He pegged the support level at 7,850.
April also marks the start of a slew of annual meetings by some of the country’s biggest conglomerates. The events are typically used as a venue for businesses to set shareholders’ expectations for the year ahead. —MIGUEL R. CAMUS
