Market seen trading sideways

MANILA, Philippines — The local market will continue to trade sideways with a negative bias this week as investors continue to look for catalysts amid rising COVID-19 cases.

According to 2TradeAsia.com, the Philippine Stock Exchange composite index’s (PSEi) immediate support is seen at 6,400, with resistance at 6,600.

The PSEi closed at 6,494, down 50 points or 0.77 percent week on week. Sectoral indices were a mixed bag.

Average value turnover was flattish at P5.57 billion while net foreign selling widened to P820 million last week, up 43.5 percent on average.

2TradeAsia.com said market investors will continue to look for catalysts for next week’s trading.

“Funds tend to follow activity and with the broader market suffering from quarantine fatigue and generally weak headlines, especially on the COVID-19 front, the case for mid-to-small caps appear appealing, at least on the turnover front,” 2TradeAsia.com said.

“Mining shares, for instance, became market darlings after mining moratoriums have been lifted; in line with this, there may be spillover momentum toward provincial plays where mining tenements are present, as mine sites provide labor opportunities plus LGU revenues,” the stock portal said.

Increased COVID vaccine rollouts and improvement in some countries worldwide in the handling of COVID-19 cases could also encourage investors, traders said.

On the other hand, threats of more COVID-19 cases and rising tension in the West Philippine Sea could discourage investors.