Potential bargain hunt seen this week
After three consecutive sessions of declines, there may be some room for bargain hunting this week at the bourse, although investors may also move cautiously.
Japhet Tantiangco, research manager at Philstocks Financial Inc., said the Philippine Stock Exchange Index (PSEi) was undervalued, allowing traders to pick up some cheap stocks to drive the market up.
“However, investors are expected to look for catalysts that would compel them to get into the bourse,” Tantiangco said over the weekend.
Last Friday, the main share PSEi closed at 6,465.53, just 0.11 percent higher week-on-week. This was after a brief visit at the 6,500 level as a “generally peaceful” midterm elections provided a boost.
Next catalyst
The rally, however, was short-lived. With most companies already having disclosed their first-quarter earnings reports, investors are now looking for another source of optimism.
Unicapital Securities Inc. research head Wendy Estacio-Cruz pointed out that the next catalyst may still be far—nearly three weeks, or during the release of May inflation data.
Another possible anchor is the Bangko Sentral ng Pilipinas’ next monetary policy meeting on June 19, Cruz said.
This week, both Philstocks and Unicapital expect the index to trade within the 6,400 to 6,600 range.
