Philippine shares are expected to move sideways in the next few days as investors opt for caution ahead of the release of a raft of economic data here and abroad.
“We’ll just be moving sideways this week. The rally on Friday does not have enough support to be extended, given that it only went up because of window dressing,” Abbygayle Estrella, analyst at AB Capital Securities Inc., said in a phone interview.
Estrella said the market may tread water ahead of the release of the ADP employment report.
ADP(R), a leading global provider of Human Capital Management solutions, is set to release the March 2014 ADP National Employment Report in the middle of the week. It includes a detailed report of private sector employment data specific to businesses with 49 or fewer employees.
“We’ll also have the March inflation [data]next week,” Estrella added.
She sees the benchmark index maintaining its support level at 6,300.
“The PSEi [Philippine Stock Exchange index] shows an intact uptrend channel and the decline we experienced on Thursday is one of the pullbacks the main index needs to return back to 6,500,” the analyst further said.
Trading seesawed last week as investors awaited the results of the Bangko Sentral’s monetary policy meeting, but by Friday the index managed to recover on the back of window-dressing activity, ending the week in positive territory. The central bank’s decision on Thursday to keep its key policy rates unchanged also helped to soothe investor concerns.