PSEi may trade lower on lack of fresh leads


The stock market could trade lower this week with investors likely choosing to stay on the safe side ahead of the new year.

“We expected the market to test the support at 8,200 [last week]… due to the negative momentum that we came into the week. However, we could not bounce off that support level and it continued lower to close at 8,144,” Eagle Equities, Inc. research head Chris Mangun said.

“I am very concerned as we broke below a strong support level. We may continue lower in the next few weeks and come all the way down below 8,000,” he added.

Online brokerage firm 2TradeAsia said the upcoming December 12-13 Federal Open Market Committee meeting would be a key consideration for investors given expectations of a Fed rate hike.

“Expect portfolio repositioning to occur as some liquidate their holdings to enable them to participate in the series of fund-raising exercises in 2018 from both public and private sectors,” it added.

“At the end of the day, it all boils down on expected yields and aggressive capital expenditure line-up is among fund managers will be aiming for.”

On Friday, the bellwether index shed 1.33 percent or 110.01 points to close at 8,144.02.

The broader All Shares dropped 1.25 percent or 60.77 points to finish at 4,785.86.


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