The bears are in on volatility from Greece


    Volatility is likely to persist in the stock market this week as investors continue to eye developments from the Greece debt problem with a wary eye.

    Markets, including the Philippine Stock Exchange, are expected to be bombarded by volatility as investors are still trying to figure out how the situation in Greece would play out, Jason Escartin, investment analyst at F. Yap Securities Inc., said in a weekly review.

    “We expect further volatility this week, as sentiment ebbs and flows on Greece,” Escartin said.

    “While the local economy’s exposure to the crisis is nil, concerns of a regional spillover, especially on trade, could curb investors’ risk appetite. Moreover, selling by foreign investors has pulled the gauges from historic highs, prompting share buybacks among local firms,” he added.

    The market may trade within the immediate support levels between 7,470 to 7,500 and the resistance levels between 7,600 and 7,650 Escartin noted.

    For AB Capital Securities Inc. the bears are likely to rule the market.

    “In terms of technicals, the index continues to show bearish signals after it failed to breach the 7,650 level on Thursday. Failure to sustain new highs opens it to the downside between 7,300 and 7,400,”said in a weekly advisory, noting that the price momentum in general is also is pointing to a bearish market in an overbought situation.

    “As such, the technical outlook remains bearish-neutral. Investors are expected to lighten equity exposure on the identified resistance levels at 7,650 to 7,700, while the key supports at 7,300 to 7,400 may act as accumulation points,” AB Capital said.

    On Friday, the PSEi lost 0.57 percent or 43.01 points to 7,535.30, while the All Shares declined by 0.34 percent or 14.56 points to 4,320.43.


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