Upbeat mood expected this week

MANILA, Philippines — Stock Market investors are still optimistic despite rising geopolitical conflict arising from a US airstrike in Iraq which killed Iran’s top general, according to analysts.

“The main index continues to trade within the range of 7,700 and 7,900 which it has been at for most of 2019. The 7,700 support level has proven to be strong support and we may not see it go below this level in the coming weeks if investors remain optimistic and build more confidence to start trading this market again after several setbacks that we saw in 2019,” AA Securities head of research Chris Mangun said.

According to Mangun, new economic data in the coming months could provide investors incentives to go back to the market.

“Economic data in the coming months will prove if growth was spurred through the initiative of the central bank. The rate cuts and the reserve ratio requirement cuts that we saw last year is expected to continue into 2020 and the effectivity of these moves will give us a clearer picture in the coming months. We remain bullish that current economic conditions are favorable for our market despite the global headwinds that continue to hound investors,” Mangun said.

He said another factor that could spur the market is the return of foreign investors who have fled to safe-haven assets or stronger markets like the US.

“As our currency appreciates, many foreign investors may take advantage and convert to the local currency and some of that money may find its way into our stock market,” he said.

Last week, western equities markets ended slightly lower after a US airstrike in Baghdad killed an Iranian military leader, raising geopolitical tensions in the Middle East.