Stocks to move sideways amid lack of catalysts
THE Philippine Stock Exchange index (PSEi) is seen to move sideways given a lack of catalysts and with consolidation.
The benchmark index closed at 8,365.11 on Friday, up 21.88 points or 0.26%.
This is higher than the PSEi’s 8,311.08 close last Nov. 17
“Looking into the indicators, we can see hints of continued decline although as of now the 50-day moving average is respected,” Luis A. Limlingan, managing director at Regina Capital Development Corp., said in a text message.
“If it breaks, we get to see another strong support level at 8,100. We also have to note that ATR (average true range) is still recording high volatility levels so caution is advised.”
The market ended the week positively but had declines mid-week mostly on profit taking.
“While we have seen how some investors seized on intraday strength to cash in from the local bourse’s ascent, this phenomenon is typical to a market poised in firming-up a new solid base,” 2TradeAsia.com said in an e-mail.
Immediate support is seen at 8,250, said 2TradeAsia.com
“The essential key to support 2018’s sturdier growth outlook entails patience, but the reward can be great for those who choose to wait. Hunt for stocks with good earnings growth and guidance and an ability to sustain their respective dividend yield. Immediate support is 8,250, resistance 8,450-8,500,” the online brokerage said.
The market will be awaiting catalysts this week for further movements, analysts said.
Technology stocks led the S&P 500 and Nasdaq to record closing highs on Friday, with the S&P ending above 2,600 points for the first time, while Amazon and retail stocks got a boost from signs of a strong start to the holiday shopping season.
The S&P 500 and the blue-chip Dow Jones industrials posted weekly gains for the first time in three weeks while the Nasdaq Composite posted its best weekly performance since the week to Sept. 1.
The stock market had a half session on what is known as Black Friday, the day after the Thanksgiving holiday and the unofficial start of the US holiday shopping season.
US stores offered deep discounts, entertainment and gifts to draw bargain hunters, but some shoppers said they were just eyeing goods, reserving their cash for online purchases.
On Thursday, Thanksgiving Day, US shoppers spent more than $2.87 billion online, according to Adobe Analytics.
The S&P retail index .SPXRT rose 0.75% and hit a record intraday high, led by Amazon’s 2.6% gain.
Brick-and-mortar stores, which have been boosting their online presence, also fared well.
The Dow rose 31.81 points or 0.14% to 23,557.99, while the S&P gained 5.34 points or 0.21% to 2,602.42. The Nasdaq added 21.80 points or 0.32% to 6,889.16.
About 2.78 billion shares changed hands in US exchanges in the shortened session. The daily average over the last 20 full sessions is 6.48 billion shares. — with Reuters
