Philippine shares will continue to move sideways this week as investors remain focused on developments abroad.
“Markets are more cautious because of uncertainties. PSEi [Philippine Stock Exchange index] could move lower,” said AB Capital Securities Inc. analyst Abbygayle Estrella.
According to her, the market will look closely at the results of the Federal Open Market Committee meeting, which will take place within this week.
“The attention will be back to Federal Reserve. If there will be any news on tapering, it may temper market sentiments,” Estrella said.
Nevertheless, she still emphasized that the correction being experienced in the market will provide Philippine shares more room to advance in the future.
On Friday, the PSEi stumbled 0.60 percent, or 38.55 points to settle at 6,391.24, while the wider all-shares index shed 0.31 percent, or 12.10 points to 3,866.72
“We’re still closely following the regional markets. The concern right now of the major markets is China’s disappointing data. Aside from their exports data, they released industrial and retail data, which were lower than estimates,” Estrella said, adding that the tension between Ukraine and Russia over Crimea has also been putting a lot of pressure on the global markets.