The stock market is expected again to trade sideways, especially in the few days leading up to the Holy Week break. Meanwhile, the Philippine Stock Exchange Index's (PSEi) is also expected to stay at the 7,500 level. Read on for the latest PSEi weekly forecast.
Here are three fast facts on the projected stock performance before the Holy Week break:
1. The stock market is expected to move sideways during the second week of April.
Harry Liu, Summit Securities, Inc. President, said in a Business World report that he thinks this week will see a more sideways behavior for the market, as long as there is no crisis, either locally or globally, or any big fundamental changes. He added that it is building up the term trend to be positive. However, there might be some technical correction because of the Holy Week.
Financial markets in the Philippines will be closed on the 13th and 14th of April. This is in observance of the Holy Week's Maundy Thursday and Good Friday.
2. Optimism for the Philippines' economic growth is expected to boost the market this week.
Analysts also expect that the optimism on the economic growth of the country will help boost the stock market this week despite the upcoming Holy Week break. However, traders are advised to take extra caution on their next move because of the geopolitical conflicts abroad.
"Given a shortened three-day trading week, focus will center on the PSEi’s ability to keep its poise above 7,500," 2TradeAsia.com reported in its weekly outlook. "We expect local participation to dominate as most fund managers take their Lenten break."
3. US nonfarm payrolls report could also be a market driver on the trading days before the Holy Week break.
Luis Limlingan, Regina Capital Development Corp. Managing Director, said that the US nonfarm payrolls report that was released on Friday, April 7, could also be a factor to drive the market this week. In March, US nonfarm payrolls increased by 98,000 jobs despite layoffs in the retail sector. Aside from this, analysts also believe that the US' missile attack on Friday may also affect the sentiment of investors.
PSEi News Update
According to the PSEi's Twitter page, the local index is at 7,618.33 points, which is up by 0.46 percent or 34.58 points, as of 10 am on Monday. On Friday, the PSEi closed at 7,583.75 level, which is up by 0.24 percent or 18.43 points from Thursday's finish at 7,565.32 level.
What do you think of the PSEi's forecast about the stocks' performance before the Holy Week break? What about the PSEi index on Friday, April 7? Let us know your thoughts in the comments area at the bottom of this page.