Share prices are expected to trade sideways this week as investors remain cautious over the surge in COVID-19 cases in some countries due to new virus strains.
Analysts said while the Philippines’ COVID-19 cases is on a decline, worries about the spread of new Delta and Lambda variants in other nations are dampening investor sentiments.
Regina Capital Development Corp. head of sales Luis A. Limlingan said the resurgence of COVID-19 cases in some countries was stoking investors’ concerns that global recovery would be stalled.
Meanwhile, BDO Unibank Inc. chief investment strategist Jonathan Ravelas said the market continues to be vulnerable to sell-off despite hitting the recent high of 7,064.24.
“Continue to expect the market to range between the 6,700-7,000 levels in the near-term. However, a sustained fall below the 6,700 levels could signal that the market could retry the 6,300-6,500 levels and reignite the bears to play,” Ravelas said.
The bellwether Philippine Stock Exchange Index last week plummeted 2.4 percent to 6,834.92, while the broader All Shares Index fell 1.4 percent to 4,234.54.