CAUTIOUS TRADING. Local equities are expected to continue to move sideways this week, ranging from a low of 4,250-4,270 and a high of 4,300-4,330. AP FILE PHOTO/AARON FAVILA
MANILA, Philippines—Local stocks are widely expected to trade with more caution this week due to a host of problems abroad, including a weak US jobs report.
Last week, the main-share Philippine Stock Exchange index gained 0.54 percent to hit 4,297.62, defying bleak global investor sentiment, due to strong bargain-hunting.
“Local investor sentiment is being clouded by developments in the global markets,” said Banco de Oro Unibank chief strategist Jonathan Ravelas.
He said the market started to encounter selling pressures late last week, dragging the index below 4,300.
“Chart-wise, the week’s close at 4297.62 highlights the market’s vulnerability. If a break above the 4,300 fails to materialize, expect further weakness toward the 4,150-4,250 levels in the near term,” Ravelas said.
Justino Calaycay Jr. of Accord Capital Equities Corp. said local equities would likely continue to move sideways this week, ranging from a low of 4,250-4,270 and a high of 4,300-4,330.
“The challenges to sustained global economic recovery heightens as the US continues to post poor numbers,” Calaycay said. “At home, investors will be sitting on the edge waiting for May inflation numbers. [There are] concerns that the official target band is in danger of being breached, sending warning signals on possible interest rate hikes.”