Market expected to move sideways this week

MANILA, Philippines - The local stock market is expected to move further sideways this week as it continues to wait for a catalyst that would propel the index back to its near record-high range two weeks ago.

Investors will be on the hunt for developments both abroad and locally, analysts said.

 “For next week, investors will look into September inflation data for hints on future BSP’s monetary policy actions,” said Alexander O. Tiu, research analyst at AB Capital Securities Inc.

Abroad, AB Capital analyst Joyce Ramos said major market movers would be the Federal Reserve’s plan to halt its bond-purchasing this month along with further development in the ongoing political unrest in Hong Kong.

“The movement will continue on its present sideways path next week, but with a downward bias,” Ramos said.

The Philippine Stock Exchange index (PSEi) was able to end last week on a positive note, climbing 0.71 percent or 50.77 points to close at 7,247.03.

Week-on-week, the PSEi, however, declined 0.20 percent as investors exit stocks on geopolitical concerns.

Tiu placed immediate support at 7,200 and resistance levels at 7,260.

 “Next week is seen as a critical point with a failure to breach the 7,260 resistance level seen as a signal that the index may now be entering into a medium term correction phase with downside targets at 7,000 and 7,050,” Tiu said.