Muted stock trading seen this week
While uncertainty hangs over the equities sector, investors might get some reprieve from global recession fears and the United States-China trade war with a pair of companies set to make their trading debut on the Philippine Stock Exchange this week.
The benchmark PSE Index last week dropped 1.47 percent to 7,704.60.
Jonathan Ravelas, head of strategy at BDO Unibank Inc., said risks remained and the market might consolidate within the 7,700 to 8,000 levels “provided the 7,500 level does not give way.”
“Investors have yet to digest the falling inflation picture along with the lower interest rates and the resumption of government spending should pave the way for a recovery of the growth momentum and improvement in the corporate bottom line,” Ravelas said.
For his part, Luis Gerardo Limlingan, managing director at Regina Capital Development, said initial public offerings could perk up market activity.
Coconut product maker and exporter Axelum Resources Corp. is expected to make its trading debut on Oct. 7 while home improvement retailer AllHome Corp. is expected to list on the PSE on Oct. 10.
Article continues after this advertisement“Most of the focus will be on the two IPOs so trading may pick up,” Limlingan said.
He pegged the resistance level at 7,800 while support was seen at 7,520 for the PSEi.
