The Manila Times

PH stocks might continue downtrend this week

FAYE ALMAZAN

THE local bourse might continue its downtrend this week amid the exodus of foreign funds, while investors are also expected to track the country’s gross domestic product (GDP) result in the first quarter for cues, analysts said.

Last week, the benchmark Philippine Stock Exchange index (PSEi) ended another week in the red as late day selling slumped the market by 0.38 percent or 24.07 points to close at 6,258.71 on Friday.

Diversified Securities Inc. trader Aniceto

Pangan sees the market continuing on its downtrend as “foreign investors continue to sell with light trade volumes wherein most investors remain at sidelines on lack of positive news.”

Net foreign selling amounted to P637.59 million on Friday, marking the 26th day of net outflows averaging P700.87 million per day.

Friday’s net value turnover was at P4.3 billion, which remained below the yearto-date average of P8.3 billion.

Pangan also sees further correction in the market with the release of the first quarter GDP data this week.

He added that market sentiment might turn positive should the government ease quarantine restrictions after May 14.

Pangan sees immediate support at 6,200, while next support is at 6,130. Resistance, on the other hand, is set at 6,500.

For his part, Regina Capital Development Corp. Managing Director Luis Limlingan likewise said that the market would await the latest GDP announcement “before they make any significant moves.”

Rizal Commercial Banking Corp. chief economist Michael Ricafort, meanwhile, cited upcoming leads and catalysts for the market, including the release of the first quarter GDP data; the central bank’s monetary policy-setting meeting; the new quarantine decision for the capital region and neighboring provinces for the rest of May; developments in the local pandemic situation; and progress in the country’s vaccine rollout.

Business Times

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2021-05-10T07:00:00.0000000Z

2021-05-10T07:00:00.0000000Z

https://digitaledition.manilatimes.net/article/281758452165409

The Manila Times