The local stock market is expected to move with a downward bias amid a cautious investor environment this week.
Despite ending in the red at 5,960.97 last Friday, the Philippine Stock Exchange index gained by 2.18 percent week-on-week.
Unicapital Securities head of research Wendy Estacio-Cruz said the PSEi is expected to trade sideways to cautiously lower this week as investors remain focused on inflation risks, Bangko Sentral ng Pilipinas policy expectations, slowing gross domestic product growth and global geopolitical developments.
‘Sentiment may stay fragile following the recent spike in inflation and renewed concerns over additional rate hikes, while concerns over softer economic growth, a weak peso and elevated oil prices could continue to limit risk appetite,’ she said.
However, Estacio-Cruz said bargain hunting may emerge on oversold blue chips, especially if global markets stabilize.
First Metro Investment Corp. head of research Cristina Ulang, for her part, said the market may remain weak, hovering just around 6,000.
She said investors would look for positive catalyst related to the US-Iran peace deal ahead of US President Donald Trump’s visit to China to justify bargain hunting.
‘Any cooling of tension in the Middle East brokered by China’s support for the Strait of Hormuz’ reopening will be cheered by the market,’ Ulang said.
Philstocks Financial research manager Japhet Tantiangco also sees bearish bias in the coming days as the market deals with the country’s challenging economic outlook, while continuing to monitor the developments between the US and Iran.
Tantiangco said even if the local market remains at bargain levels, it may pull back this week given the negative factors in play.
‘Hence, investors are advised to move with caution,’ he said.
Immediate support is seen at 5,800, while resistance is at 6,050