Trading at the Philippine Stock Exchange is expected to remain bearish as investors weigh the US Federal Reserve’s hawkish signals.
Analysts said investors ignored the recent move by the Bangko Sentral ng Pilipinas to keep its policy rate unchanged because of US Fed chair Jerome Powell’s statement that more rate hikes would be needed to fight inflation.
Philstocks Financial Inc. research manager Japhet Tantiangco said the market may retest the 6,400 level this week.
If the index goes back to the 6,400 level, Tantiango said the market is seen trading from the 6,400 to 6,600 level. However, if it fails to return to the 6,400 level, then the market’s next support level is seen at the 6,000 to 6,100 level.
“Given the market’s current position, we may see some bargain hunting which, in turn, could help it bounce back. However, global economic worries may continue to weigh on sentiment,” Tantiangco said.
“This is as many advanced economies are on a monetary tightening path with Federal Reserve signaling more possible rate hikes moving forward,” he said.
Last week, the bellwether Philippine Stock Exchange Index dropped 114 points to close at 6,393 amid continued selling pressure. Jenniffer B. Austria