Market seen moving with upward bias

MANILA, Philippines — The stock market could regain its momentum this week with investors searching for bargains and fresh leads.

The benchmark Philippine Stock Exchange index finished in the red last Friday at 6,618.69, but it was able to climb by 1.64 percent week-on-week.

Japhet Tantiangco of PhilStocks Financial said the local market was able to bounce back last week amid bargain hunting.

This was backed by robust first quarter corporate results, lower-than-expected April inflation data in the US, and hopes of policy easing cues from the Bangko Sentral ng Pilipinas (BSP).

“Looking at the bigger picture however, the market has been moving sideways since mid-April showing investors’ indecisiveness as they weigh hopes against lingering risks in the market,” he said.

Tantiangco said at its current level, the local market is still deemed attractive.

“Hence, episodes of bargain hunting are still possible in this week’s trading,” he said.

The prospects of a possible rate cut by the BSP as early as August following their less hawkish stance in their latest meeting may also give sentiment a boost this week, according to Tantiangco.

He said investors are likewise expected to continue digesting first quarter corporate results.

“With these, the market could move with an upward bias,” Tantiangco said.

Market’s support is seen at 6,400, while resistance is at 6,700.