Gaining strength this week may prove to be a challenge for the local bourse as positive catalysts remain elusive, with most blue-chip companies still yet to report their earnings.
Japhet Tantiangco, senior analyst at Philstocks Financial Inc., said over the weekend that the market had been anemic, “implying weak conviction.”
Net value turnover last Friday was at P3.63 billion, below the year-to-date average of P5.18 billion, he noted.
“From a historical and regional standpoint, the local market is deemed attractive, which invites bargain hunting,” Tantiangco said.
“However, the market may still find it difficult to stage a rally amid the lack of a strong catalyst,” the analyst added.
The benchmark Philippine Stock Exchange Index (PSEi) dipped below the 7,400 mark last Friday to 7,314.23, down 1.4 percent week-on-week.
While many were elated by its brief breach of the 7,500 level earlier this month, the PSEi has yet to snatch it back.
The weakening peso, which fell to 58.31 against the greenback last week, likewise exacerbated negative sentiment.
Tantiangco added that investors would likely brace for the upcoming US election next week, especially as experts and traders were gradually pricing in Donald Trump’s return to the White House.
Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said a Trump presidency “could lead to higher interest rates in the United States due to potential inflationary pressures from increased fiscal spending and tariffs.”
Meanwhile, a Kamala Harris presidency could maintain a “more stable” economic policy, Ravelas said. —Meg J. Adonis