Sideways trading seen as market seeks fresh leads

MANILA, Philippines — Local stocks are expected to continue trading sideways this week as investors search for fresh leads that could support a stronger market rally.

The Philippine Stock Exchange index ended in positive territory last week after a strong performance on Friday, closing at 6,268.75, up by 2.19 percent week-on-week.

“The local market rose last week, mainly attributable to its Friday jump. In the process, the market was able to get past its 50-day exponential moving average,” Philstocks Financial research manager Japhet Tantiangco said.

However, Tantiangco said value turnover has not been convincing yet as many are still staying on the sidelines amid lingering uncertainties, especially on the global trade front.

This week, he said the local market may test the validity of its breach of the 50-day exponential moving average, with investors still expected to monitor the developments on the global trade frictions initiated by new US tariff policies.

Positive developments mainly on trade negotiations are expected to boost market sentiment.

“Lack of such, however, may cause investors to exit the bourse,” Tantiangco said.

He said investors may also watch out for the upcoming April S&P Global Manufacturing PMI for clues on the local economy.

Unicapital Securities head of research Wendy Estacio-Cruz, for her part, said the index is expected to continue trading sideways within the 6,000 to 6,300 range this week.