MANILA, Philippines - Anxiousness over the US Federal government’s continued shutdown and the fiscal deadlock in US Congress will continue weighing down investor sentiments this week, they said.
Investors are expected to remain on the sidelines anew pending resolution of overseas concerns, analysts said.
“The local bourse will likely continue to follow the movements in the US market. With the looming concern on the length of the shutdown and the next fiscal dispute over raising the $16.7-trillion debt ceiling, expect the market to move sideways with a downward bias in the week ahead,†said Jonathan Ravelas, chief market strategist at BDO Unibank Inc.
Abbygayle Estrela, equities analyst at AB Capital Securities Inc., said focus will remain on the external side.
Freya B. Natividad, investment analyst at Papa Securities Corp., said sentiments are mixed, with most investors awaiting the decision on the US budget.
Week-on-week, the Philippine Stock Exchange index was flat, inching up 0.16 percent or 10.67 points to 6,390.48.
The market initially shrugged off effects of the first US government partial shutdown in 17 years.
However, the prolonged unpaid leave of more than 800,000 is seen to hurt the US economy.
Moody’s Investors Service’s decision to upgrade the Philippines’credit score to investment grade slightly lifted sentiments but atug-of-war between the bears and the bulls prompted the market to end the week flat.
For this week, analysts expect the main index to follow trends abroad.
“Support is 6,250 but if there is good news from US, we can test 6,500,†Natividad said.
Ravelas said the bellwether index might trade between 6,000 and 6,500.
“The uncertainty in the market continues to persist,†Ravelas said, adding that if the 6,350 levels hold, the main index can bounce
towards 6,500.
Estrella said some investors might also take positions ahead of the third quarter earnings season in November.