Market may weaken further this week
At least two analysts said the 8,300 may be the next support level and from that, the market may bounce back. File
MANILA, Philippines — The stock market may fall and could even reach 8,300 this week, analysts said.
At least two analysts said the 8,300 may be the next support level and from that, the market may bounce back.
Chris Mangun, head of research at Eagle Equities, said the market may lose another 200 points.
“We are currently down 2.9 percent for the month of February, but I have no doubt that we will recover before the end of the month. I will not be surprised if we lose another 200 points next week, however, I am also confident that if we do, we will see it hold our major support at 8,300,” Mangun said.
He said a bear trap scenario is beneficial to the market.
“A bear trap is a false signal that the rising trend of a stock or index has reversed when it has not,” he said.
“If this scenario plays out, we will see the index bounce off that support line and break above 9,000. This is called a bear trap. This is beneficial for our market as more of the “weak hands” will be shaken out,” Mangun said.
Last week, the PSEi was battered by a global selloff of equities, tracking markets around the globe.
Jonathan Ravelas, chief market strategist at BDO, said last week’s close at 8,503.69 indicated the market may range between the 8,350 to 8,700 levels in the near-term.
“Immediate support and resistance is seen at 8,300 and 8,800 levels, respectively, he said.
Meanwhile, the PSE, the local stock operator, will have its ceremonial closing bell ringing program today as it says goodbye to its Tektite Trading Floor, in line with the migration to the trading floor in the new PSE headquarters at Bonifacio Global City.
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