Philippine stock market to see some buying interest due to Greek debt resolution

MANILA, Philippines—Local stocks are expected to trade mixed when trading resumes on Wednesday, after a two-day holiday break.

Traders expected the Philippine Stock Exchange index to move within a narrow band over the next few days given the abbreviated trading week and muted investor interest.

Nonetheless, some local counters may see buying interest especially with last week’s resolution of Greece’s sovereign debt crisis that prompted a rally on Wall Street.

According to AB Capital Online, the PSEi would likely trade between its resistance of 4,400 and its support level of 4,250 in the coming days from its close last Friday of 4,333.72.

Last week, the main stock barometer rose 4.01 percent, or a total of 167 points.

“Some blue chips made their significant contribution to the market, particularly the mining heavyweights, telcos and holding [firms],” the online broker said in a note to clients. “But third liners also made up for the slightly slow activity in the main index as they were actively traded during the week. The uncertainty over the outcome of talks in Europe led some investors to shy away from index issues and opt for the more volatile and speculative ones.”