Market to move sideways

MANILA, Philippines - Share prices are expected to move sideways this week as the market will continue to look for signals from the US and at home, analysts said.

For the next two weeks, the benchmark index may continue to move “sideways to down,” said Luis Limlingan, managing director of Regina Capital.

“Index is trading near resistance, we advise staying light on positions and wait for pullbacks before accumulating.  Also, note that volatility readings remain high so expect moderate to sharp intraday movements which will provide quick trading opportunities,” Limlingan also said.

Jason Escartin of 2TradeAsia.com said investors would continue to keep a close watch on developments in the US.

“Players may be increasingly sensitive to labor data out of the US, ahead of the Federal Open Market Committee’s meeting in January. Investors are seen to keep an eye on December jobless claims, followed by estimates on employment change data. Non-farm payrolls and unemployment data on the 8th of January will be a determining factor for sentiment moving forward,” said Jason Escartin of 2TradeAsia.com.

In the local front, he said investors would be keeping a close watch on the May elections.

“With attention likely to be drawn to the upcoming national elections in May, expect volatility within 6,800 to 7,000. Investor sentiment is likely to glide with trends overseas, in the absence of new leads within the local arena,” he said.

Escartin said immediate support is seen at 6,900 and resistance at 7,000-point levels.

June Maunes, head of research at First Resources and Management said the market is likely to rebound in the first quarter.

“We are in consolidation. We expect a rebound in the first quarter. After the Fed rate hike, the Fed will gradually increase rates and that will be good for the market,” Maunes said.

Maunes said while the benchmark Philippine Stock Exchange index (PSEi) closed 2015 in negative territory, it was still better than the performance of other emerging markets.