Listless trading ahead; leads awaited
Stocks will continue sideways trading for the week as investors assess external macroeconomic risks and upcoming first quarter earnings releases.
“We expect the index to be range-bound as investor sentiment remains cautious amid uncertainty on the path of inflation and interest rates. This largely mirrors the United States markets, so any critical movement there could affect local trading,” said Joan Paolo Colet, managing director at Sy-led investment bank China Bank Capital Corp.
Colet noted that investors would also be looking at the first quarter performance of consumer companies and real estate developers for clues on the impact of higher costs and elevated borrowing expenses.
The benchmark Philippine Stock Exchange Index (PSEi) rose 0.59 percent last week to end at 6,520.44.
There was no trading on Friday, which was declared a holiday in observance of Eid al-Fitr.
“Last week saw tepid market activity as investors remained on the sidelines, with average daily market turnover at P3.4 billion versus [year-to-date] average of P5.8 billion. Key performers were major banks as they reported robust earnings,” Colet said.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the PSEi was currently below the resistance area of 6,530 to 6,580.
The next key resistance was from 6,730 to 6,830 while strong support could be found at 6,420 for the PSEi, he noted.
