Stocks seen to trade sideways

MANILA, Philippines — With an upward bias, stocks are expected to trade sideways this week as investors scout for fresh market leads.

The benchmark Philippine Stock Exchange index (PSEi) failed to maintain its position above the 6,500 level last week, closing at 6,465.53 on Friday, down by 0.97 percent week-on-week.

First Metro Investment Corp. head of research Cristina Ulang said the PSEi could see a healthy correction before retracing 6,500 and making an attempt to touch the 6,600 mark.

Last Tuesday, the index soared past the 6,500 level for the first time since early January, closing at 6,566.82, before dropping three straight sessions.

AP Securities research head Alfred Benjamin Garcia said he expects this week to be mostly quiet, with earnings season already wrapping up last week and no significant economic releases coming up.

“However, we expect the index to mostly build on the past month’s bullish momentum and continue drifting in a generally upward direction,” Garcia said.

Unicapital Securities head of research Wendy Estacio-Cruz said the market is now looking forward to the May inflation data on June 5 and the next Bangko Sentral ng Pilipinas Monetary Board meeting on June 19.

“We expect the index to trade within 6,400 to 6,600 range this week,” she said.

Philstocks Financial research manager Japhet Tantiangco said that with the local market still deemed undervalued, there is still room for bargain hunting this week.

“However, investors are expected to look for catalysts that would compel them to get into the bourse,” Tantiangco said.

He said investors are still expected to go through the first quarter corporate results and watch out for developments on the global trade front, with signs of progress on negotiations with the US expected to fuel positive sentiment in the market.

Tantiangco said support is still seen at 6,400, while resistance is at 6,600.