Local stocks are expected to move sideways on thin volume with only two trading days this week.
Local financial markets will be closed Monday, Wednesday and Thursday to give way for Barangay and Sangguniang Kabataan elections and the observance of All Saints’ and All Souls’ days.
Online brokerage firm 2TradeAsia.com said the Philippine Stock Exchange index’s fall below the 6,000 level last week could provide investors an opportunity to accumulate bargain stocks.
It said the next round of corporate earnings release could provide traders information on medium-term outlook and plans for 2024.
“Usual plays in banking, gaming and fourth-quarter season are underscored, and stocks with high dividend yields should remain popular as potential bond proxies,” 2TradeAsia.com said.
It said the market’s immediate support this week would be 5,800 to 5,900 level, while resistance would be test at 6,000 to 6,100 level.
The bellwether PSEi plunged 180 points, or 2.95 percent, last week to close at 5,961.99 after the Bangko Sentral ng Pilipinas’ surprise off-cycle rate hike.
“BSP’s unexpected off-cycle rate hike translates to elevated inflation expectations up to at the least the first half of 2024,” 2TradeAsia.com said.
Average value turnover stood at P3.27 billion.
