Market may weaken anew this week

The stock market may continue its downward trend this week, reflecting investors’ lack of enthusiasm.

“As the Philippine Stock Exchange index heads for support at 7,750, the lack of enthusiasm from investors may see it break below that support and continue to lower to 7,000 in the coming weeks,” said Christopher Mangun of AAA Securities.

Mangun said nothing seems to give investors optimism that the market could go higher. “Investors are ignoring economic fundamentals and are more concerned with the general sentiment. The main index has gone below its 200 moving average which is a clear sign that we will see more losses,” he said.

Moving forward, Mangun said any market recovery may be just a technical rebound unless there would be a significant increase in volume.

“Any recovery will be treated as a minor correction unless we see a massive pick up in buying volume. With one more trading day for the third quarter, the main index is set to end with a loss of more than two percent even if we see a gain of more than half a percent on Monday which is highly unlikely,” he said.

Stock market investors are hoping that the pipeline of initial public offerings can perk up the market.

This, Mangun said, could give investors some reprieve from this constantly disappointing market.

IPO bound companies include Axelum Resources, All Home, Cal-Comp Technology and Fruitas.

Last week was a bad week for equities as most global market ended with losses.

“The general investor sentiment continues to sour as political concerns add into the mix of negatives. The US House of Representatives have expressed their intent to impeach President Trump,” he said.