Piper Chaucer Tan of Philstocks Financials expects the Philippine Stock Exchange index to trade between 7,500 and 7,800 this week and may also test the 7,700 support line.
STAR/ File
Cautious trading expected this week
Iris Gonzales (The Philippine Star) - December 23, 2019 - 12:00am

MANILA, Philippines — Investors are expected to remain cautious this week as hopes for a Christmas rally disappeared last week, according to analysts.

Piper Chaucer Tan of Philstocks Financials expects the Philippine Stock Exchange index to trade between 7,500 and 7,800 this week and may also test the 7,700 support line.

“The week’s close at 7,773.12 highlights the risk of a test of the year’s low at 7,514.05. I think the market will experience tepid, lackadaisical trading this week since the market will be shortened by the holidays,” Tan said.

Last week, the stock market barometer Philippine Stock Exchange index (PSEi) fell by 1.33 percent week-on-week to 7,773.12.

Investors lightened up their positions after the market failed to sustain the rally above the 8,000 level.

BDO Research said in a commentary that last week’s close at 7,773.12 highlights the risk of a test of the year’s low at 7,514.05.

Tan said investors are indeed risk averse and might take positions cautiously.

He said the continued attacks of President Duterte against the two water concessionaires Ayala-led Manila Water and Pangilinan-led Maynilad Water Services Inc. are also adding to the jitters in the stock market.

Traders said other listed companies in highly regulated businesses are also affected because of the dimming prospects on the regulatory environment in general.

“We think that the regulatory woes coming from the water sector will continue to swoop the market up until at the end of the year,” Tan said.

BDO PIPER CHAUCER TAN PSE
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