Market may continue to weaken this week
“Chartwise, the week’s close at 8,372.51 continues to suggest the market may range between the 8,350 and 8,600 level. However, should a break below the 8,350 level occur, expect a test of 8,000 to 8,100 level,” said Jonathan Ravelas, chief market strategist at BDO. Philstar.com/File Photo
MANILA, Philippines — The benchmark Philippine Stock Exchange index may continue to weaken this week, analysts said.
Traders said the index may go down to the 8,000 to 8,100 level if it breaks below 8,350.
“Chartwise, the week’s close at 8,372.51 continues to suggest the market may range between the 8,350 and 8,600 level. However, should a break below the 8,350 level occur, expect a test of 8,000 to 8,100 level,” said Jonathan Ravelas, chief market strategist at BDO.
Last week, the market barometer PSEi fell by 1.02 percent week-on-week to settle at 8,372.51.
Ravelas said investors continued to remain on the sidelines as they await more results of fourth quarter corporate earnings and fresh leads in the economy.
“Immediate support and resistance is seen at 8,300 and 8,800 levels, respectively,” he said.
F. Yap Securities said concerns on inflation and trade wars have affected market sentiment.
“From inflation to trade war. This is the latest page-turner for the week, as regional bourses roiled on the possible effects of protectionist policies against globalization and free trade. If we take the tariff issue out of the picture, the topic boils down to competitive pricing.
“How low of a base price will depend on a country’s dynamics, which includes among others, economic policies, down to micro setting’s manpower and overhead. By mere realization, China (and neighboring peers in the region) has reached an advanced stage in supply chain management, which has upped the ante on competition,” F. Yap Securities said.
“There were years of sacrifices and the fact that the nation has gone through all those challenge, only underscores its ability to weather even bigger challenges in the way. In the end, trade is about making end-users happy. Regardless of tariffs, consumers will always find a way to get the goods delivered at their doorstep with budget maximization at the fore,” it said in a report.
Against this backdrop, F. Yap said, another cautious tone may prevail this week, ahead of the US Federal Reserve meeting on March 20 to 21, 2018.
“Immediate support is 8,300, resistance is at 8,450 to 8,470,” it said.
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