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Market return to 8,000 level expected this week

MANILA, Philippines - The stock market is looking to make its return to the 8,000 level in the coming days following a strong finish last week that saw the benchmark index erase huge losses incurred the previous sessions.

Analysts still see a sideways trading this week, with local corporate earnings and some upcoming events in the US as possible factors for a rally or another consolidation. 

“Volatile trading is expected, as first quarter US GDP is slated for release.  Several will check on the Federal Open Market Committee’s announcement, with special attention to the timing and degree of an interest rate hike,” said Jason Escartin, investment analyst at F. Yap Securities.

“On a more positive light, an improvement in the US economy will be a boon to another dollar-earner segment of our economy - exports. This may at the very least buffer the impact of the expected outflow that a US interest rate hike may trigger,” added Justino Calaycay Jr., analyst at Accord Capital Equities Corp.

For Calaycay, what is important at present is for the Philippines  to maintain its present fiscal discipline and continue to hold the international community’s faith and trust in the strides the country has taken in the last half-decade.

Following a three-day losing streak, the market closed the last two sessions last week in the positive territory with bargain-hunters lifting gauges higher. Week-on-week, the index was flat at 7,947.

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“The first quarter cycle is just about to begin as well and if what BDO reported is any indication, we should stumble across more reasons to be bullish,” Calaycay said.

“The market might range-trade for now, until clearer catalysts emerge to support aggressive buying,” Escartin added.

Analysts placed immediate support at  7,850 while  resistance is at 8,000.

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