Cautious equities trading expected this week
Investors are still expected to trade cautiously this week given the downside risks brought about by the weakening peso and elevated inflation.
Philstocks Financial, Inc. senior research analyst Japhet Louis Tantiangco said that traders might take advantage of the recent market dip and hunt for bargains.
“Still, bearish sentiment is expected to weigh on the overall market amid lingering downside risks,” he said.
“This includes the weakened peso which is already nearing the 55 per US dollar level; mounting upside risks to inflation; and the possibility of a global economic slowdown amid the recession risk in the US, and the ongoing Russia-Ukraine war,” he added.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said that other market catalysts include the upcoming manufacturing growth data and oil prices.
Tantiangco said that Philippine Stock Exchange index’s (PSEi) immediate support is at 6,100 to 6,150 range.
On Friday, the benchmark PSEi rose by 2.51 percent, or 152.33 points, to close at 6,217.56 while the broader All Shares index climbed 1.61 percent, or 52.90 points, to end at 3,337.63 by the closing bell.
Last week, Razon-led Prime Infrastructure Capital Inc. filed a P28-billion initial public offering (IPO) to finance several projects for its energy, water and waste and sustainable fuels businesses.
The IPO, according to the prospectus it filed with the regulator, consists of a primary offering of 1.76 billion common shares with an over-allotment option of up to 175.58 million shares. Offer price is at P14.60 each.
—TYRONE JASPER C. PIAD INQ
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