Investors are expected to take cues from a fresh set of macroeconomic data this week as they gauge whether they will hold on to their positions or sell some of their holdings.
Michael Ricafort, Rizal Commercial Banking Corp. chief economist, said primary market catalysts this week include budget deficit, bank loan and domestic liquidity growth reports.
He pegged the immediate support level at the 6,650 territory and resistance level within 6,830 to 6,890.
Regina Capital Development Corp. head of sales Luis Limlingan added “window dressing will be one of the main drivers as February reaches a close.”
This meant investors were likely to rebalance their portfolios as the market welcomes a new month, he said.
On Thursday, the Philippine Stock Exchange index (PSEi) dropped by 0.20 percent, or 13.33 points, to close at 6,685.90 while the wider All Shares index slipped by 0.20 percent, or 7.16 points, to end at 3,572.20.
Claire Alviar, Philstocks Financial Inc. assistant manager for research and online engagement, said the PSEi drop came after minutes of the US Federal Reserve’s last meeting were revealed.
“According to the minutes, the Fed is more likely to raise interest rates to manage the elevated inflation in the US,” she said.
Trading at the local bourse was cut short by a day last week after Malacañang declared on the evening of Feb. 23 that Friday was a holiday to commemorate the anniversary of the Edsa People Power Revolution, which is usually observed every Feb. 25.