Stock market investors are expected to stay cautious this week as they weigh both local and global developments.
Analysts said investors would watch how the market could hold above the 6,400 level as a key support. If the index stays above this level, it could move up toward the 6,600 resistance level.
Philstocks Financial Inc. research head Japhet Tantiangco said sentiment may improve following President Ferdinand Marcos Jr.’s decision to keep his economic team. This move could ease worries about changes in the government’s economic direction.
“Signals from Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. of two more possible rate cuts this year may also strengthen market confidence,” Tantiangco said.
He, however, noted that risks from the U.S. fiscal outlook and rising debt levels may still affect global markets, including the Philippines.
Last week, the Philippine Stock Exchange index closed at 6,413.10, down 0,81 percent while the broader all shares Index ended at 3,746.79, down 0.60 percent.
Average daily value traded dropped to P6.75 billion from previous week’s average of P7.86 billion.
Foreign investors were net sellers for the week, with outflows reaching P447 million.
