ANALYSTS see investors looking for bargains even at the bottom of the barrel this trading week.

After two straight days of decline, the Philippine Stock Exchange index ended higher last Friday, July 1, 2022, by 9.92 points, or 0.2 percent, to close at 6,165.35.

According to Philstocks Financial Inc. senior research analyst Japhet Tantiangco, the market has already declined for four consecutive weeks with a total loss of 8.54 percent. Thus, they are expecting episodes of bargain hunting in this week’s trading.

“The market could still move with a bearish bias due to the lingering downside risks at the local economy. Chartwise, the market’s support is seen at the 6,100-6,150 range. Resistance is seen at the 6,350-6,400 range,” Tantiangco said in his analysis.

Meanwhile, Rizal Commercial Banking Corp. chief economist Michael Ricafort and 2TradeAsia noted that investors are expected to look toward the upcoming June inflation data and an inflation print significantly faster than May’s 5.4 percent that could lead to more selling pressures in the market.

They said the peso-to-dollar exchange rate is already at P55:$1, and a further depreciation of the local currency will weigh on the market. Also, the market may also take cues from the upcoming Philippine labor market figures and worries over the global economy amid the monetary tightening of the Federal Reserve (Fed) and rising commodity prices caused by the Russia-Ukraine war.

For other external US catalysts, Ricafort pointed out the following: Fed/Federal Open Market Committee minutes; factory orders; durable goods orders; trade deficit data; jobless claims data; jobs/employment data; consumer credit; and consumer price index/inflation data.

For Ricafort, support is seen at the psychological 6,000 mark and immediate resistance at the 6,300-6,500 levels.

For 2TradeAsia, immediate support is seen at 6,100-6,000 and immediate resistance at 6,400.