By Arra B. Francia, Senior Reporter
SHARES may move sideways for the rest of the week as investors take profits amid a lack of leads.
The benchmark Philippine Stock Exchange index (PSEi) slumped 0.17% or 14.41 points to close at 8,030.98 on Tuesday, ending a three-day winning streak for the market.
Turnover was valued at P7.78 billion in the previous session, while net foreign inflows stood at P244.02 million.
The market was closed on Wednesday, June 12, as the country celebrated its 121st Independence Day.
“For the remainder of the week, we may still see some profit taking at around 8,100 level may also continue the sideways movement within the range of 7,900-8,100. No market-moving catalyst as of this moment — thus, investors might be in accumulation mode resulting to sideways movement,” Philstocks Financial, Inc. Research Associate Piper Chaucer E. Tan said via text.
Unicapital Securities, Inc. Technical Analyst Cristopher Adrian T. San Pedro also noted the PSEi may move sideways in the short term.
“I see the index to remain sideways between 7,800 support and 8,140 resistance in the short term with the possibility of testing 8,214 and 8,300 resistance levels if it stays above 7900,” Mr. San Pedro said in a separate message on Tuesday.
Philstocks’ Mr. Tan added that the market may get a boost from the increase in investment pledges recorded by the Board of Investments (BoI).
The BoI said on Tuesday that the value of projects pledged from January to May totaled P290.6 billion, 40.1% higher than the same period a year ago. Power-related investments accounted for 63.8% of this figure, as pledges for the sector alone grew 74% year on year.
The Philippine Statistics Authority also reported on Tuesday that the country’s trade deficit slimmed by 5.4% to $3.7 billion in April. The decline for the month, however, was not enough to offset the increase in year-to-date trade deficit, which stood at $13.26 billion, 12.4% higher year on year.
Overseas, investors may also see a bright spot as the United States moves to iron out its trade disputes with China and Mexico. US President Donald J. Trump recently said he is preparing to meet Chinese President Xi Jinping during the G20 Summit in Japan later this month, although the latter has yet to confirm his participation.
“The US also is considering trade deals with China and Mexico as investors remain hopeful for this moment,” Mr. Tan said.
Wall Street indices on Tuesday, however, ended with not much changes. The Dow Jones Industrial Average went down 0.05% or 14.17 points to 26,048.51. The S&P 500 index dipped 0.03% or 1.01 points to 2,885.72, while the Nasdaq Composite index decreased 0.01% or 0.6 point to 7,822.57.