No rally yet as more hikes seen
With five straight weeks of decline, the last one posting 4.42 percent worth of losses, investors may see bargain hunting this coming trading week
Daily TribuneWith five straight weeks of decline, the last one posting 4.42 percent worth of losses, investors may see bargain hunting this coming trading week
Worry is palpable on the floor of the New York Stock Exchange on 23 September as the Dow Jones Industrial Average dropped more than 400 points due to growing recession fears. | Spencer Platt/Getty Images/Agence France-Presse
The benchmark Philippine Stock Exchange index sustained a five-day streak of declines last week, and it looks like the market barometer is not yet ready to post a significant rally as investors deal with expectations of further policy rate hikes here and abroad.
"With five straight weeks of decline, the last one posting 4.42 percent worth of losses, investors may see bargain hunting this coming trading week," Japhet Tantiangco, research manager at Philstocks Financials Inc., said.
"However, we do not expect a significant rally from the market yet as it is seen to continue dealing with expectations of further policy rate hikes by the Federal Reserve and the Bangko Sentral ng Pilipinas," he added.
Peso to weigh on sentiment Tantiangco also noted that the Philippine peso, which has been trading at the 58-level against the United States dollar, is also expected to weigh in on the investors' sentiments. "Trading may remain tepid as the market continues to move without a positive catalyst," he added.
The index closed last week below the 6,300 level after shares dropped 42.17 points to 6.259.54 on Friday, 0.67 percent lower than Thursday's close amid mounting recession fears.
The market's net market value turnover on Friday was P4.47 billion. Sectors were mixed, led by the Industrials as gainers while Holdings led the losers.
Chartwise, the 6,400 level that the market breached last week is now seen as immediate resistance. Meanwhile, immediate support is seen at 6,200 followed by key support in the 6,000 to 6,100 range.
