Market seen to consolidate

With the financial reporting season for the second quarter already over, the stock market is headed for consolidation as investors await fresh leads.

BPI Securities said share prices are expected to trade sideways this week as investors await new developments and stronger signs of corporate growth.

Last week, the Philippine Stock Exchange index or PSEi closed at 2,329.90, 0.49 percent or 11.56 points lower.

Average daily volume fell to 2.31-billion shares while average daily value rose to P1.48 billion compared to 3.01-billion shares worth P1.06 billion the previous week.

AB Capital Securities’ Jovis Vistan said the lack of fresh leads has resulted in thin trading and the absence of follow-through buying.

"August has always been tagged as a ghost month and so far, it is shaping up to be just that," Vistan said.

"It appears that the local equities market will be moving sideways for the rest of the month. The PSEi is barely holding on to the support band of its short-term uptrend channel," Vistan said.

Vistan said "while some stocks showed some life early last week amid easing tensions in the Middle East and growing evidence that the US Fed may remain on hold with its tightening efforts, the sustainability of the gains remain suspect as the current market environment is highly challenging."

Resistance is seen at 2,400, Vistan said.