Investor sentiment might still be dragged by concerns over the coronavirus disease 2019 (Covid-19) this week, but anticipation from upcoming earnings reports could buoy the local bourse.
The benchmark Philippine Stock Exchange index (PSEi) last week traded sideways as investors stayed on the sidelines amid growing Covid-19 casualties, ending in 7,200 territory.
In recent reports, the Covid-10 death toll reached over 1,300. Vietnam, meanwhile, recently quarantined over 10,000 people following six reported cases.
“For this coming week, Covid-19 concerns still linger in the market, but this can be tempered by investors’ anticipation of [full year] 2019 earnings results,” Philstocks Financial Inc. research analyst Claire Alviar said.
“We are expecting bargain hunting in the market as the P/E (price to earnings) ratio of the PSEi was already at bargain level of 15.79 times,” Alviar added.
She pegged the support and resistance level at 7,200 and 7,500 mark, respectively.
2TradeAsia, meanwhile, agreed that the economic impact of Covid-19 has been bringing woes to investors as the virus forced factory closures in China, which can affect the global supply chain.
“While the market is generally within a weak pattern, buyers may seek again prospective retracements near 7,000, given the bourse’s ability to recover,” the brokerage firm said.
2TradeAsia pegged immediate support within the 7,100 to 7,200 range and resistance within the 7,350 to 7,450 territory.
On Friday, PSEi fell 1.64 percent or 121.12 points to finish at 7,282.00 while the wider All Shares dipped 0.88 percent or 38.13 points to end at 4,319.11.