Stocks ready to move past typhoon impact

MANILA, Philippines —  The local stock market is ready to move past the onslaught of Super Typhoon Carina as it looks for fresh catalysts to support another strong run.

Despite losing 0.97 percent week-on-week, the Philippine Stock Exchange index managed to recover from the impact of Carina to end the week on a high note last Friday at 6,726.01.

“The local market has already exhibited a golden cross as its 50-day exponential moving average crossed above its 200-day counterpart. This signals a possible rally in the medium to long term for the bourse,” Philstocks Financial research manager Japhet Tantiangco said.

However, Tantiangco said trading remains tepid as many are still on the sidelines amid lingering uncertainties.

But with the local market seen remaining undervalued, he said there may still be episodes of some bargain hunting this week.

“For the market to stage a strong rally however, catalysts are needed,” Tantiangco said.

He said investors are likely to watch out for the US Federal Reserve’s policy meeting this week.

Investors in particular are expected to watch out for clues regarding the Fed’s policy outlook.

“If the Fed gives a dovish outlook, this may spur optimism in the local market. Investors may also watch out for the upcoming S&P Global Philippines Manufacturing PMI for clues on the local economy, Tantiangco said.

On its end, 2TradeAsia.com, in a report, said momentum generated by an improving macro backdrop are likely to persist until data confirms otherwise.