MANILA, Philippines—The local stock market is seen taking its cue from the overseas markets when it reopens Tuesday after a long weekend break.
Last week, the main-share Philippine Stock Exchange index lost 1.4 percent to finish at 4,271.72.
The market continued to be weighed by developments in the eurozone, anchored on concerns on the future of debt-strapped Greece.
“The market’s direction will be largely dictated by events in the eurozone. Domestic factors, particularly the latest inflation figures, will also weigh on the index this week,” said Manuel Lisbona, deputy chief of PNB Securities.
Lisbona sees the trading range for the main index this week between 4,230 and 4,310.
“Chart-wise, continue to expect the market to try the 4,350-4,400 levels in the near-term,” said Banco de Oro chief strategist Jonathan Ravelas.
“Only a break below the 4,150 levels will call the market bears back to play,” Ravelas said.
Since the start of the year, the index is still ahead by about 1.7 percent from the end-2010 level of 4,200.
After a run-up in October, the index is seen consolidating in the coming weeks. An immediate support for the index is at 4,200 while the next psychological resistance is seen near 4,300.