Market seen performing better this week

The stock market is expected to continue to perform better this week.

The benchmark Philippine Stock Exchange index (PSEi) may stay above the 8,000 mark.

“Immediate support is 7,900, resistance 8,100 to 8,150,” F. Yap Securities said in a report.

F. Yap Securities said the market is likely to experience healthy technical breathers and sustain market’s performance last week.

The PSEi gained 143 points to close at 8,047, up 1.8 percent week-on-week. All sectors scored green, led by financials, 2.4 percent and property, up 1.86 percent.

This was on the back of prospects for softer tightening stance from the US Federal Reserve.

Average turnover also rose to P11.2 billion with net foreign buying at P1 billion.

“The warm-up has been commendable for local equities, especially after daily net foreign buying averaged P777 million since the start of 2019 versus net foreign selling of P203 million for 2018,” F. Yap Securities said.

However, the next question that remains to be answered is whether the trend would be sustained.

It warned that markets have yet to price-in uncertainties on the outcome of US-China trade talks given tariffs’ impact on consumer demand.

“What is only known so far, is that both the US and China are highly driven to strike a momentous deal to ensure economic growth will be sustained. Over the short-term, investors would check if progress would be made during the 90day timeframe, or possibility for talks to be extended further. If the latter is upheld, there may be improved chances to lift the pressure for local currencies to gyrate, and give ample room for monetary authorities to either maintain their policy stance, or even cut rates,” F. Yap Securities said.