The stock market could see declines this week with investors expected to take their cues from continued earnings reports, the release of third quarter economic growth data and news from abroad.
“The market simply could not sustain itself above 8,500 as it needs more consolidation within that area for more momentum,” Chris Mangun, research head at Eagle Equities, Inc. said during the weekend.
Mangun said he expected the market to trade within the 8,200 support to the 8,300 resistance levels this week.
Online brokerage firm 2TradeAsia, meanwhile, said investors could also be looking for news on the government’s tax reform plans, an expected US Federal Reserve rate cut before the end of the year and whether the Organization of Petroleum Exporting Countries would decide to extend output cuts during a November 30 meeting.
“Given crude’s impact on consumer prices, moderate price movement is preferred, as this could significantly create gyrations,” 2TradeAsia said.
The benchmark Philippine Stock Exchange index (PSEi) mostly closed in 8,500 territory last week, buoyed by positive earnings results, but shed 1.01 percent on Friday to end at 8,433.48.
The wider All Shares dropped 0.96 percent or 47.96 points to finish at 4,931.86.
Analysts attributed the decline to investors deciding to take profits ahead of the Association of Southeast Asian Nations (Asean) summit and amid concerns over the outlook for corporate tax cuts in the United States.