Market likely to open on positive note this week

The local stock market is expected to open on a positive note following Wall Street’s gains last Friday.

Analysts, however, expects overall trading to remain lackluster this week as investors await news indicating it was time to get back into the stock market.

Online stock portal 2tradeasia.com said financials and property shares could lead the market’s advance, alongside select stocks that are seen to weather the weakness towards the final stretch this year.

2tradeasia.com expects the market’s immediate support at 1,900 and resistance at 1,960-1980.

Last week, the PSEi slid 1.52 percent to 1,921.34 primarily due to disappointing economic data and deepening fears on the US economy.

Latest statistics showed that private employers cut 157,000 jobs in October and that workers filing for unemployment insurance for the first time fell 4,000 last week.

“Business outlook remained sour as manufacturing, service, and factory services showed disappointing results in activity this week. Productivity also looked uncertain as an imminent laborers cut brought by adverse market conditions slow down business operations,” said AB Capital Securities.

“The excitement on Obama’s victory also proved short-lived as worries resurfaced a day after his win. Investors began to worry if the president-elect could pick up the battered pieces of the US market and economy and lead it to a recovery. Regional markets also looked upon his abilities and policies that could significantly stimulate their own emerging economies,” AB Capital Securities added.

Investors are expected to be all eyes on the Crisis Summit to be attended by diplomats from major and emerging economies this week to discuss how world leaders can revamp the financial markets to spur growth in the countries.