Investors to remain cautious this week

Today will be a historic day for the Philippine stock market because it will be the first day that the Philippine Stock Exchange will ring the opening bell in its new headquarters in Bonifacio Global City in Taguig.

D. A. Market Securities said the new building has a lucky chi and that market investors should buy during the first day of trading.

But as for the direction for the whole week, it’s not very clear yet where the market will go as traders say investors remain cautious.

“Chartwise, the week’s close at 8,612.44 suggests the market to range between the 8,350 and 8,700 levels in the near-term. Immediate support and resistance is seen at 8,350 and 8,800 levels, respectively,” said Jonathan Ravelas, market strategist at BDO.

Last week, the Philippine Stock Exchange index (PSEi) rose for the first time in three weeks by 1.28 percent week-on-week to 8,612.44 on bargain hunting after hitting a low of 8,379.83.

“Investors remain cautious as they have yet to get comfortable with the higher interest rates,” he said.

Ramon Vicente T. Kabigting, head of research at PAPA Securities, said that last week, like many Asian markets, the Philippines shrugged off greater-than-expected inflation in the US.

For his part, Eagle Equities’ head of research Chris Mangun said that in the coming weeks, investors may see the market retest the 9,000 level.

“We saw the market stabilize above 8,500 which is our major support. I am convinced that the market will continue to trade sideways as we build up trading volume and wait out the continued foreign selling. There are several trading gaps to be filled on the way up to retest the 9,000 level which I think we will see in a few weeks,” Mangun said.