Index may hover between 7,000 and 7,400 this week
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by Land Asia Listings
- February 8, 2017
- News
- 0
MANILA, Philippines – The benchmark Philippine Stock Exchange index is expected to hover between 7,000 and 7,400 as market investors continue to wait for fresh leads, possibly coming from corporate earnings results for 2016, analysts said.
“Chartwise, the week’s close at 7,226.70 continue to suggest the market to range between 7,000 and 7,400 levels in the week ahead,” Jonathan Ravales, chief market strategist at Banco de Oro said.Ravelas said share prices fell 1.46 percent week-on-week to 7,226.70 on profit taking as investors capitalized on their gains due to volatility following the decline in Wall Street earlier in the week.
“Market players remained sidelined awaiting fresh leads,” Ravelas said.
Echoing a similar observation, market research portal 2TradeAsia.com said market investors remained on the sidelined because of concerns of US President Trump’s immigration order banning Muslims from entering the US.
The market failed to keep its head afloat 7,300, as traders took their cue from US Pres. Trump’s immigration order,” it said.
Last week, the market favored bears, 102 to 82, with turnover slowing to P5 billion from P6 billion.
Moreover, net foreign outflows reached P135 million.
For this week, 2TradeAsia.com said developments in the US would likely drive sentiment.
“Political headlines are likely to drive events this week, especially sequel pronouncements from Trump. After the Fed decided to keep its key interest rate unchanged, succeeding monetary policies will depend on how Trump will address US economic growth through his administration’s fiscal expenditure program, as well as other matters that could affect trade and fund flows,” 2TradeAsia said.
Outside the US, Brexit-related policies are also expected to surface, as legislators have triggered on Article 50 of the Lisbon Treaty.
Debates are expected to start especially now that the legal challenge of triggering the exit mechanism of European Economic Area arises, 2Trade also said.
