Share prices are expected to continue their upward momentum after a six-week winning streak amid an improving global trade outlook.
Despite the market’s sustained rally, Philstocks Financial Inc. research head Japhet Tantiangco said the index remained undervalued and there is still room for bargain hunting.
“The local market is still deemed to be at undervalued levels despite the 6-week rise. Hence, there is still room for bargain hunting,” Tantiangco said.
“However, investors are expected to look for catalysts that would compel them to get into the bourse,” he said.
Likewise, investors are also expected to watch out for developments on the global trade front, with signs of progress on negotiations with the U.S. expected to fuel positive sentiment in the market.
Tantiangco, however, noted that value turnover has been thinning, which indicates that investors remain cautious.
“Chartwise, the local market may still test its 200-day exponential moving average. Support is still seen at 6,400. Resistance is seen at 6,600,” Tantiangco said.
The Philippine Stock Exchange index rose 0.11 percent to close at 6,465.53 last week, while the broader all shares index went up 0.17 percent to 3,769.37.
Average daily value turnover reached P7.86 billion, slightly higher than the previous week’s average of P6.8 billion.
Foreign investors were net sellers for the week, with outflows reaching P213.87 million.
