A shortened trading week will see volatility as investors try to catch up on window-dressing for their portfolios before the quarter ends ahead of the Holy Week.
Share prices are expected to move sideways in light volumes, unless funds flow in from Europe and Japan at the last minute, according to the BPI Asset Management.
“We expect the local equities market to be more volatile in the coming week on the back of a shortened work week as well as quarter end portfolio rebalancing activities,” said BPI Asset Management in its weekly market review.
Reaffirming the same view, BPI Securities Corp. Chief Executive Officer and Managing Director Michaelangelo Oyson said the market is set to move sideways on Monday and Tuesday before the Holy Week kicks off on Wednesday, at high valuations.
The “market will continue to move sideways. I believe the market is fundamentally fully valued,” Oyson said.
“However, the market can get a shot in the arm if excess liquidity in Europe and Japan find their way into the Philippines. The carry trade thematic will continue to be a key market driver,” he added.
BPI Asset Management sees the PSEi trading in a tight range of 7,820 to 7,950 during the week.
Justino Calaycay of Accord Capital Equities Corp. said the market may observe “light trading” in the holiday-shortened sessions.
In the next few weeks, the PSEi is likely to reflect the steady stance on interest rates of both the US Federal Reserve and the Bangko Sentral ng Pilipinas, as well as the valuation concerns and volatility of the global markets, Calaycay said.
On Friday, the main PSEi showed a slightly positive bias at the close, up 0.09 percent or 6.86 points at 7,877.96, still a record, marking the 21st time this year it finished at an all-time high. The All Shares index, on the other hand, ended nearly flat at 4,546.40, or up 0.20 of a point or 0.004 percent.
The financial markets will be closed on Wednesday, April 1, and will resume trade on Monday, April 6.