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SHARES are expected to move sideways this trading week as investors await the release of 2020 gross domestic product (GDP) data on Thursday.
The benchmark index of the Philippine Stock Exchange (PSEi) closed at 7,045.83 on Friday, down 94.46 points or 1.32% from the previous trading day.
Week by week, the main index fell 192.63 points or 2.66%, extending its fall.
Average market value turnover for the week increased 21% to P12.68 billion, while average net foreign sales expanded to P964.48 million.
Timson Securities, Inc.’s director of online trading, Darren Blaine T. Pangan, said in a mobile phone message that the market could move sideways this week as investors await the release of data on the performance of the economy. last year.
He said this week’s trade will also depend on the ongoing spread of the coronavirus disease 2019 (COVID-19) in the country.
“In a longer-term perspective, investors continue to evaluate the launch of the coronavirus vaccine, especially amid the increase in cases in some provinces of the country,” said Pangan.
Recent bulletins from the Department of Health showed that some of the provinces that recorded the most new cases of COVID-19 include Davao City, Isabela, Bulacan, Rizal, Cebu City, and Mountain Province.
Online brokerage 2TradeAsia.com said in a market note that GDP data will fuel anticipation-driven volatility in the coming sessions.
“The economic team expects -5.5%; World Bank at -8.15%, while Bangko Sentral ng Pilipinas (BSP) expects -9% more conservative, ”said 2TradeAsia.com.
“While the negative numbers may have already been included in the share price, any downside surprise will be detrimental to sentiment that no longer has direction, particularly for cyclical and recovery-correlated stocks,” he added.
Philstocks Financial, Inc. senior research analyst Japhet Louis O. Tantiangco said the market is forecast to decline amid waning optimism and amid developments related to the new COVID-19 variant.
“The further spread of the new strain in the country is expected to weigh on market confidence, as it poses the risk of reverting to stricter social restraint measures, which are seen as derailing our economic recovery,” Tantiangco said in a mobile. Phone message.
2TradeAsia.com said immediate market support will be at 7,000, secondary at 6,850 and resistance at around 7,300 to 7,350.
“7,000 is still the support area we have to watch out for, with 6,800 being the next important support level. 7,300, on the other hand, is where you can set resistance, ”said Pangan of Timson Securities.
“The PSEi can test its 50-day exponential moving average, a dynamic support, which is currently at 7.005.71. If it falls below that line, the next market support is seen at 6,900. Resistance, on the other hand, is seen in the 7,150-7,200 range, ”said Tantiangco of Philstocks Financial. – Revin Mikhael D. Ochave
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