MANILA, Philippines — The stock market is expected to hover from 6,100 to 6,600 this week after last week’s selling pressure.
“This past week, selling pressure was already observed as the market managed to close just 11.11 points, or 0.17 percent, above the flat line compared to prior weeks wherein it was able to make solid gains or 5.41 percent and 10.73 percent, respectively,” according to Philstocks Financials senior analyst Japhet Tantiangco.
He said that market investors are still keeping a close watch on the lingering risks from the coronavirus disease 2019 or COVID-19 pandemic.
“The market has shrugged off a crucial downside factor on optimism over economic recovery,” Tantiangco said.
He also said that onshore, recorded COVID-19 cases are still on the rise, putting the option to revert to more stringent quarantine measures back on the table. Offshore, fears of a second wave are also mounting.
“For this trading week, selling pressure is expected to be felt more as the local market weighs the prospects of an economic recovery against resurfacing COVID-19 fears,” he said.
Moving forward, investors are expected to brace for the government’s decision regarding the quarantine measures of the country after today.
“A tightening of the restrictions could fuel economic recovery hopes which, in turn, could give room for a tempered upside. A shift back to stricter ones could strengthen selling pressure,” Tantiangco said.