Stocks are expected to continue trading sideways this week, with a slight upward bias, on easing US-China trade tensions and upcoming corporate earnings results.
The benchmark Philippine Stock Exchange index (PSEi) ended in red territory last Friday at 6,089.53 but week-on-week, it managed to gain by 0.86 percent.
The broader All Shares index also posted a 0.18 percent week-on-week improvement to 3,665.08.
‘The benchmark index started the week in the green on the back of bargain hunting, but gains were capped later in the week as investors turned cautious amid Finance Secretary Ralph Recto’s warning of slowing economic growth in the coming quarters amid a government corruption scandal, which has also stalled the country’s credit rating upgrade,’ Unicapital Securities Inc. equity research analyst Peter Garnace said.
This week, Garnace said that the PSEi is expected to trade sideways with a slight upward bias amid the spillover of positive sentiment from US peers as the market digests President Donald Trump’s soothing remarks about China tariffs and easing bank credit fears.
He said the market is seen trading within a narrow range between 6,000 and 6,150.
‘PSEi is likely to remain trapped in narrow trading band due to lack of catalysts, but a small uplift could come from US and China reaching a trade deal on rare earth metals in an upcoming talks,’ First Metro Investment Corp. head of research Cristina Ulang said.
Analysts also expect investors to closely monitor earnings releases in the coming days.