Sideways trading seen this week

MANILA, Philippines — The Philippine stock exchange is expected to trade sideways this week.

But Astro del Castillo, managing director at First Grade Finance Inc., said the market would likely trade with an upward bias.

“Expect next week for the Philippine Stock Exchange index (PSEi) to trade sideways, but with an upward bias,” Del Castillo said.

He said it is possible that the stock market could test again the 8,000 level especially after President Duterte signed the 2019 budget.

The stock market closed the week on a quiet note because of the shortened trading period as a result of the Lenten break.

Nevertheless, he noted some net foreign buying again plus some accumulation by local investors.

“The positive reaction on the recent signing of the national budget continues to echo in the trading floor,” he said.

2TradeAsia also shared the same view.

“With 2019’s fiscal budget in place and the end of 2018 tax reporting season, participants will trace sequels to project approvals and deployment, especially for infra-based tickets. The market might soon price-in possibilities for fiscal tax receipts to surprise on the plus side, boost available state funding in the process,” 2TradeAsia said.

2TradeAsia said immediate support may settle at 7,700 to 7,750 and resistance at 7,900 to 7,950.

Furthermore, it sees investors to be headed for a relatively busy post-Easter week with the line-up of annual shareholders meetings.

It said there will be more than a review of corporate earnings growth expectations this year as analysts chart performance based on preliminary first quarter 2019 guidance.