Market declines expected in shortened trading week
Developments abroad could drive the stock market lower in another holiday-shortened trading week, analysts said.
Trading will start on Tuesday as the country celebrates National Heroes Day today.
US consumer spending results due later this week could cement expectations of a Federal Reserve rate hike next month, Timson Securities, Inc. trader Jervin de Celis said, leading to “foreign investors liquidating their shares in the PSE (Philippine Stock Exchange).”
With the market already up by 2.4 percent or 183 points week-on-week, De Celis said the PSEi may retest the 7,500 level.
“We still see the 7,800 to 8,000 [level]as a critical level to breach but since we have no fresh local catalyst yet, our index may trade sideways,” he added.
Eagle Equities, Inc. research head Christopher Mangun also sees lower volumes for this week.
“There is no indication that the Fed will be raising interest rates. Nevertheless, the Fed’s hawkish stance may continue to strengthen the dollar and we may see foreign funds continue to flow out which will continue to hurt emerging markets,” Mangun noted.
On Friday, the Philippine Stock Exchange index dropped 0.48 percent or 37.56 points to close at 7,766.47, while the wider All Shares dipped 0.08 percent or 3.76 points to finish at 4,782.82.
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