Stocks are expected to trade sideways this week, with a downward bias, ahead of the US Federal Reserve’s March 20 meeting.
Rizal Commercial Banking Corp. (RCBC) economic research head Michael Rifacort said the global and local markets anticipate the upcoming US Federal Reserve’s rate-setting meeting and decision/statement coming out by the middle of the week.
Ricafort said, however, that most markets priced in reduced possibility of Fed rate cuts later in 2024.
Online brokerage firm 2TradeAsia.com said while the consensus has long been firm on a non-move on rates, comment about the timing of easing should fuel short-term speculation.
“A May cut is also getting under certain albeit still fairly possible,” it said.
“Brace for price gyrations in tandem with macro headlines, as markets remain interest rate sensitive. Additionally, it will be interesting how the benchmark will chart after Friday’s candle,” it said.
Market support is seen at 6,750, and resistance at 7,000.
2TradeAsia.com said the index needs stronger impetus to reach the 7,000 resistance level because the effect of the recent string of positive corporate earnings has been minimal.
The bellwether Philippine Stock Exchange index dropped 119 points, or 1.73 percent, week-on-week to close at 6,8200 on Friday due to profit-taking.
The average turnover jumped 70 percent week-on-week to P8.76 billion, while foreigners turned net sellers by an average of P619 million.