Philippine share prices are likely to continue to fall this week as wary investors are expected to sell following a Wall Street decline.
Jonathan Ravelas, BDO UniBank chief market strategist, said the Philippine Stock Exchange index (PSEi) would be hit by a “domino effect” after US markets fell on Friday on worries over low oil prices and a slowing Chinese economy.
“For the week, the local bourse is seen to tilt on the downside as risk-averse investors would likely sell rather than buy shares,” Ravelas said.
“The trading range for the week could be between 6,000 and 6,500 points,” he added.
Jason Escartin, investment analyst at 2TradeAsia.com, said continued pessimism over ambiguous Chinese policy moves, compounded by concerns over crude futures’ unabated weakness, had driven global equities lower.
The PSEi suffered a 4.37 percent loss last Monday on account of a global sell-off. Trading over the following days was volatile, with the market closing the week up 40.74 points or 0.64 percent to 6,449.50 from Thursday. The wider All Shares inched up by 22.24 points or 0.61 percent to 3,698.00.
This week, Escartin said a relief rally would not come as a surprise given bargain prices.
“But it might be too early to hope for a reversal on the much stronger downtrend. Trade prudently,” he said.