President Benigno Aquino 3rd is set to deliver his fourth State of the Nation Address (SONA) today and its outcome may largely dictate the faith of the country’s equities market alongside the emergence of economic leads.
Joey Roxas, president of Eagle Equities, said if there is one thing that the market could be anticipating for the SONA is the country’s chief executive report that will be stated today.
Astro del Castillo, First Grade Finance managing director, on the other hand, said that Philippine shares may start to become more active again as companies begin to release their first-half corporate earnings.
For this week, Roxas said support will be at 6,500 to 6,300 levels and resistance level is at 6,700.
“We can expect the market to range between 6,350 and 6,700 levels.
Expect a retry to 6,700 again. Failure to break said levels could call for test of 6,300 to 6,350 levels,” Jonathan Ravelas, chief market strategist of BDO Unibank Inc., specified.
In the previous week, the number of days that the local market corrected dominated the times where it ended quite positively.
On Friday, the partial disposition by listed conglomerate San Miguel Corp. of its Manila Electric Co. (Meralco) shares has triggered a market correction amidst the absence of market-moving global and local economic news.
Del Castillo said that only the news regarding Meralco shares sell-off, given the size of the shares involved, could have made the market dropped since there was no other market-moving news that could have triggered it.
He noted, however, that at that point, the market remains relatively healthy and just undergoing a bit of consolidation.
Philippine Stock Exchange index (PSEi) concluded the week flat, falling slightly by 0.41 percent, or 27.33 points to 6,621.02, as well as the wider all shares, which slumped by 0.48 percent, or 19.26 points to close at 4,032.08.
On Thursday, the local stock market has finally escaped from its losing trend, which started two days ago that was caused by investors getting cautious anew on global developments.
After a two-day decline, the PSEi finally managed to recover, climbing by 1.12 percent, or 73.63 points to 6,648.35, as well as the wider all shares, which went up 1.11 percent, or by 44.47 points to 4,051.34.