Market to move on GDP news


The stock market could possibly try again for the 8,000 level following the release of second quarter gross domestic product (GDP) growth data, analysts said.

“For this week, the main focus will be second quarter GDP. Better-than-expected GDP could possibly retest the 8,000 level. Downside risk is at 7,800,” IB Gimenez Securities research head Joylin Telagen said in a text message.

Juanis Barredo, chief technical analyst at COL Financial, said a bit of volatility could be expected given the word war between the United States and North Korea.

“Although we may see selective action in the Philippines, our index needs to hold over 7,862 and more importantly, over 7,718, to stay sideways. Otherwise, we may give in to wider corrective shifts,” Barredo said.

Online brokerage firm 2TradeAsia, meanwhile, said investors would be watching the degree and timing of fiscal stimulus measures that are expected to be rolled out later this year.

“The [Philippine Stock Exchange index’s] attempt to move past 8,040 and sustaining this ascent could keep gauges within a narrow trading band for now,” 2TradeAsia added.

A diplomatic solution to the US-North Korea tiff will be welcome “as the lack of such would keep investors on their toes,” it added.

The bellwether PSEi gave up 31.09 points or 0.39 percent to close at 7,935.16 on Friday, settling in the red for the fourth consecutive day. The broader All Shares declined by 24.21 points or 0.51 percent at 4,684.35.


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