Stock market may consolidate further this week
Traders said the main composite index may trade within the 7,700 to 8,000 range this week. File
MANILA, Philippines - The stock market is expected to consolidate further this week, analysts said.
Traders said the main composite index may trade within the 7,700 to 8,000 range this week.
“Market barometer PSEi remained range bound finishing the week almost unchanged at 7,889.33 as investors remained on the sidelined as market players wait for fresh new leads on the economy. Chartwise, the week’s close at 7,889.33 still suggest the market to range between 7,700 and 8,000 levels,” said Jonathan Ravelas, chief market strategist at Banco de Oro.
Similarly, the peso weakened against the dollar, also affecting the stock market.
The local currency weakened anew by 0.22 percent week-on-week for the fourth straight week to close at 50.58 to $1 last week.
Ravelas said the week’s close at 50.58 to $1 indicated that the strong bull is very much alive, with the next key level at the 51 to $1 level.
The peso is expected to hover at between 50.50 and 50.75 level, Ravelas said.
Traders said the market would see some consolidation for now as it builds its base to support stronger rises.
“This will be a good time to revisit specific stocks that have lagged for quite some time such as telcos, mining, water, especially those that would benefit from improved capex or investment initiatives,” 2TradeAsia.com said.
“Aim for the key story line that will provide a significant boost on corporate earnings. This would include sectors that are poised to benefit from government’s infra-spending rollout, it added.
It sees immediate support at 7,800, with resistance at 7,900-7,950.
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