Volatile trading seen this week
![Volatile trading seen this week](https://media.philstar.com/photos/2024/08/04/6_2024-08-04_18-55-39.jpg)
MANILA, Philippines — Heightened volatility is expected in the local bourse this week as investors try to shake off the lingering impact of US recession fears that pulled down the market last week.
Philstocks Financial research manager Japhet Tantiangco said the local market extended its decline to a second week last Friday, shedding 1.79 percent after failing to take its 6,700 to 6,800 resistance range.
Tantiangco, however, said the market remains above its 50-day and 200-day exponential moving averages.
With the local market still deemed to be undervalued and with the two-week decline, he said a bargain hunting fueled rise is likely in this week’s trading.
“Growing hopes of monetary easing in the Philippines and the US soon following recent dovish cues from both the Bangko Sentral ng Pilipinas and the Federal Reserve may help the market climb,” Tantiangco said.
“However, the recession fears in the US, if it lingers, is seen as a downside risk to the local bourse,” he said.
Investors are likewise seen to continue monitoring the second quarter and first half financial results of local corporates.
Further, investors may also take cues from upcoming macroeconomic data including the July inflation rate, June labor force survey and second quarter gross domestic product, according to Tantiangco.
“August is looking to be busier relative to prior years, with changes in macro fundamentals concentrated over the latter half of the third quarter,” 2TradeAsia.com said.
“Expect heightened volatility in the coming sessions as participants hone in on a to-be/not-to-be August local cut, in time with corporate earnings results,” it said.
Major support is seen at 6,400 to 6,600 while resistance is at 6,900.
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