Market expected to take a lull ahead of holidays
MANILA, Philippines - The equities market is expected to take a lull due to a shortened trading week.
Analysts, however said, investors will likely focus on buying opportunities despite the lull as jitters on Cyprus’ debt woes subside.
“Trading activity may slightly decline as local and foreign investors take their leave for the Lenten season,†said Freya Natividad, investment analyst at brokerage firm 2Trade-Asia.com.
But there will be buying opportunities for select stocks despite only three trading days this week. “Long-term players are likely to seize this lull to position, in anticipation of improved local prospects for the initial quarter of the year,†Natividad said.
Week-on-week, the Philippine Stock Exchange index (PSEi) declined two percent or 135.89 points to end at 6,518.71. The decline was paced by holding firms (-3.9 percent) and property (-2.7 percent) sectors.
Average daily turnover fell 16 percent to P10.55 billion from a week ago.
Jonathan L. Ravelas, chief market strategist at BDO Unibank Inc., said the main index might test the 6,575 to 6,630 levels in the near-term.
“If said levels will hold, expect another sell-off to try the 6,000 to 6,250 levels,†Ravelas said.
2TradeAsia pegged the immediate support level at 6,450 and resistance at 6,570 to 6,600.
For this week, Natividad said investors should “check on lead sectors and aim for good trading ranges in preferred bets.â€
“The earlier perceived stigma of potential ‘ripple-effect’ has already been discounted into prices, as investors are more able to look on Cyprus’ overall impact on the euro block,†Natividad added.
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