Market may test 8,150 this week

MANILA, Philippines — The stock market may test the 8,150 mark this week after taking a defensive stance last week on continued rising geopolitical tensions caused by North Korea, traders said.

“The PSEi traded sideways to 8,022.75 as the market took a defensive posture on continued rising geopolitical tensions caused by North Korea. Market players remained sidelined as they await fresh leads to sustain prices above the 8,000 levels,” said Jonathan Ravelas, chief market strategist at Banco de Oro.

“Chartwise, the week’s close at 8,022.75 continues to highlight that the market still has momentum to try the 8,100 to 8,150 level. Continue to see tests toward the 8,000 to 8,150 levels. Immediate support and resistance is seen at 7,850 and 8,100, respectively,” he said.

In a report, Philstocks Financials said investors could have a fresh start again this week, but at the same time acknowledged global uncertainties.

“With risks still elevated as evidenced by the movement, or the lack of it, in overseas markets, the floor opens for another week of trades sans the degree of excitement that stirs optimism and translates to higher share prices. Markets will be watching action in the United Nations as the US presents its resolution for further economic sanctions on North Korea. China and Russia have voiced opposition to the move, but  kept some doors open for a possible support for the move, given certain conditions,” it said

Philstock said the PSEI would once more face the challenge of keeping above the 8,000 level and breaking past the 8,100 line.

“Given the present conditions, we do not see any big movements either way,” it said.

It doesn’t help that investors are also shying away generally because of the ghost month.