Investors are expected to closely monitor key local economic data releases this week to sustain the market’s recovery.
‘We have seen a good bounce of the market from the 5,900 low. We should expect this to be sustained,’ Sun Life Investment Management president Michael Enriquez said.
The Philippine Stock Exchange index (PSEi) closed in positive territory last Friday at 6,108.86, climbing back to the 6,100-mark after retreating to the 5,900 level earlier in the week.
Week-on-week, the PSEi jumped by 1.36 percent, while the broader All Shares index gained by 1.13 percent.
‘The local bourse managed to recover midweek after briefly dipping below the 6,000 level, as bargain hunting and repositioning ahead of key economic data lifted sentiment,’ 2TradeAsia.com said.
The online brokerage firm said that while the PSEi’s range-bound struggle and global risks keep sentiment muted, current levels present a strategic entry for long-term capital.
‘Global slowdown signals and domestic lethargy suggest a cautious approach, but undervaluation in the local equity market offers selective upside for nimble investors,’ it said.
This week, Philstocks Financial research manager Japhet Tantiangco said investors are expected to watch out for the Philippines’ September inflation data and the Bangko Sentral ng Pilipinas (BSP)’s policy decision.
Tantiangco said that an inflation rate within the BSP’s 1.5 percent to 2.3 percent projection, especially one biased toward the lower end, may give sentiment a boost.
He said that a rate cut or signals of further policy easing in the near-term are also seen as helping to lift sentiment.
‘Investors are also expected to take cues from the movement of other financial markets. A further improvement in the peso’s position and a further decline in yields are expected to help the market,’ Tantiangco said.
Immediate support is seen at 6,000, while resistance is at 6,200.