The stock market may continue to trade with caution this week as investors await developments in the eurozone as well as the conclusion of Supreme Court Chief Justice Renato Corona’s impeachment trial.
Last week, the main-share Philippine Stock Exchange index firmed up by 0.95 percent to close at 4,925.97 on Friday, marking a technical rebound from the previous week’s decline.
According to Freya May Natividad, an analyst at 2TradeAsia.com, market activity may slow down further this week as institutional players in the United States go on holiday to celebrate Memorial Day.
“Punters might also heed local political trends, specifically how the Senate would end its impeachment trial,” Natividad added.
In the meantime, Natividad said, investors should check out select stocks’ chart trends for buy signals. The market’s immediate support is seen at 4,850-4,900, while resistance stands at 4,970.
AB Capital Securities said the market could move sideways this week as investors opt to wait for the smoke to clear in Europe.
“Moreover, there is very little news to drive the market after the release of the first-quarter corporate earnings results. Although numerous stocks reached technically oversold levels during the recent sell-off, there are still very few issues that have reached bargain levels,” AB Capital Securities said.
Profit-taking among foreign funds reflected on the depreciation of the local currency to 43.95 against the US dollar.—Doris C. Dumlao