Share prices may test the strength of its recent breakout as investors continue to monitor global trade developments and currency movements for direction.
Philstocks Financial Inc. research head Japhet Tantiangco said while investors remain cautious, the local stocks may test the validity of the market after it breached the 50-day exponential moving average last week.
“Investors are still expected to monitor the developments on the global trade frictions initiated by the US’ tariff policies. Positive developments mainly on trade negotiations are expected to boost market sentiment. Lack of such, however, may cause investors to exit the bourse,” Tantiangco said.
Tantiangco said the strengthening of the peso against the dollar, if it continues this week, is also expected to help the market rise further.
Investors are also expected to look at fresh economic data, particularly the April S&P Global Manufacturing PMI, for signals on the health of the local economy.
“Chartwise, the market’s trading range is still seen from 6,000 to 6,400,” he said.
The Philippine Stock Exchange index surged 2.19 percent, to close at 6,268.75 last week, while the broader all-shares index advanced 1.06 percent to finish at 3,695.69.
Average value turnover improved to P6.08 billion from previous week’s average of P4.32 billion.
Foreign investors were net sellers for the week, with outflows amounting to P178.1 million.
