Trading at the Philippine Stock Exchange is expected to remain volatile this week due to the spread of the more infectious Delta variant of the coronavirus that could slow down global recovery.
Analysts said the market is showing a more bearish trend as investors are opting to stay on the sidelines in the wake of another round of lockdown that may delay the economic recovery and weaken corporate earnings.
“The week’s close at 6,520.74 highlights the bears are in control. This signals further tests towards the 6,300 levels in the near-term. A break below the said levels should put the 5,700/6,000 levels within striking distance,” BDO Unibank Inc. chief investments strategist Jonathan Ravelas said.
At the same time, investors will be monitoring the sixth and final State of the Nation Address by President Rodrigo Duterte for possible pronouncements about the government’s actions to strengthen the economy during the pandemic.
Meanwhile, the month-end window dressing and the release of second quarter earnings results could provide opportunity for bargain hunters to pick up defensive stocks.