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Local stock trading is seen to remain sluggish this week as rising domestic coronavirus (COVID-19) cases increase the risks that the government will take further action to restrict the movement of businesses and individuals.
Last week, the Philippine Stock Exchange (PSEi) major stock index fell 4.35 percent to 6,436.10 as the rise in COVID-19 cases in the country made investors nervous. .
BDO Unibank chief strategist Jonathan Ravelas said investors feared recent restrictions could further delay the country’s economic recovery.
Higher inflation and interest rates in the United States added to investors’ concerns, prompting them to sell stocks, Ravelas said.
“The close of the week at 6,436.10 indicates that the market could still test the 6,000 to 6,300 levels in the short term,” Ravelas said.
Any pullback is limited to 6,500 to 6,700, he added.
On Tuesday, the first IPO listing of this year will be held at the PSE. DoubleDragon Properties real estate investment trust, DDMP REIT, will be listed after completing its offering of P14.7 billion at P2.25 per share.
Joseph Roxas, president of Eagle Equities Inc., said the market will likely remain sluggish until the DDMP REIT listing.
He said investors were also on the lookout for the upcoming rebalancing of the FTSE indices.
—Doris Dumlao-Abadilla
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