The benchmark Philippine Stock Exchange index (PSEi) is seen to trade sideways this week as investors await the developments on the ongoing trade war between the United States and China.
“We see the market to move sideways [this] week as investors may still focus on the US-China trade front which remained uncertain,” Philstocks Financial Inc. research associate Claire Alviar said.
It was reported that the so-called phase one of their deal — which covers farm and bank industries — may be delayed until next year.
Recently, Chinese President Xi Jinping said he was keen on concluding the trade negotiations but stressed China would retaliate if needed.
Uncertainty, however, looms over the deal after US lawmakers expressed support toward Hong Kong rights — through passing a bill — which was not well-received by Beijing.
Alviar said that with last week ending in net foreign selling of P3.22 billion, PSEi was pushed to downward bias.
“While on a positive note, end of month window dressing later next week and possible bargain hunting could support the market,” she added.
Amid the celebration of the Thanksgiving holiday, brokerage firm 2TradeAsia said that foreign investors might shy away this week.
“Within such lull, it would be good to gradually position on prime stocks, ahead of an expected rebound,” it noted, setting the immediate support at 7,700 level and resistance at 7,900 to 7,950.
For his part, AAA Equities head of research Christopher Mangun said: “This market will not rally until we see a pick up in trading volumes and until investors start to look at economic and corporate fundamentals.”
Mangun pegged the immediate support and resistance at 7,800 and 7,920 mark, respectively.
On Friday, PSEi gained 0.07 percent or 5.70 points to close at 7,824.59 points while the wider All Shares added 0.18 percent or 8.28 points to end at 4,679.04.