Philippine stocks may see volatile trading this week, after the previous week’s massive sell-off, analysts said over the weekend.
They said that while share prices might rebound Monday after Friday’s steep decline, investors’ focus would likely be on the release of important economic data and corporate earnings later this week.
“The sell-off last Friday induced mainly by institutional trades for the PSEi rebalancing, could prompt an index rebound on Monday,” China Bank Corp. managing director Juan Paolo Colet said.
Colet said activity for the rest of the week would be driven by the release of second-quarter gross domestic product and US July inflation prints, corporate earnings and the MSCI index review announcement.
“The market will likely remain mired in its multi-month range with major resistance at 6,700 to 6750 and support at 6,370-6400,” Colet said.
Rizal Commercial Banking Corp. economist Michael Ricafort said the recent depreciation of the peso against the dollar and the downward correction in the US stock markets were adding to investors’ worries.
The bellwether Philippine Stock Exchange index plunged by 174 points, or 2.63 percent, last week as investors shrugged off the further easing of local inflation rate and positive corporate earnings.