Japhet Louis Tantiangco works as a senior research analyst at local stock market think tank Philstocks Financial, Incorporated.
He gave his insights on how the domestic market investors would behave this week as well as their overall sentiments.
Tantiangco relayed that the local stock market would carry on moving on a downward trend, as per Philippine daily newspaper, The Philippine Star’s report.
This movement would prevail for the coming days, he remarked. Tantiangco cited that the confirmed cases of the coronavirus infection have increased in the Philippines.
This scenario is contributing more to the downbeat investor sentiments currently prevailing, he said.
The Philstocks Financial market analyst relayed that the other latest events prove that these investors are wary.
The decline in bond yields, the slump in oil, and the rallying of gold are among these recent happenings impacting the local market, he said.
Tantiangco explained that, overall, the outlook of the local stock market leans more on the downside.
As the fears of the disease, also known as COVID-19 linger, this situation in the market demonstrates that investors opt to stay in the risk-off position.
Tantiangco said that last week, the Philippine Stock Exchange extended its losses by 0.26 percent week-on-week.
These figures illustrate a plummeting action to 6,770.38. Furthermore, Tantiangco added that anemia shrouded trading activities.
This condition exhibited a weekly average net value turnover posting P5.5 billion. These registered numbers are lower than last year’s average totaling to P6.3 billion.
Moreover, Tantiangco relayed that these figures are below P5.6 billion, which is the year-to-date average.
He stated that all of these movements in the local stock market indicated that plenty of investors are avoiding the equities market at this time.
They are waiting for the bearish clouds to vanish, Tantiangco said. Meanwhile, BDO Research shared that the local stock market closed at 6,770.38 last week.
This closing value highlighted a possibility of a slowdown in bargain hunting, according to the firm.
Furthermore, BDO Research analysts explained that this scenario is despite inexpensive valuation. They cited to anticipate another try at 6,800 to 6,900 levels.
BDO Research analysts pointed out that, if sustaining the rally fails, revisiting the lows anew could take place.
Also, they said that support still lies at the 6,700 levels.
Over the weekend, the Department of Health announced that the number of confirmed coronavirus cases in the country has surged to six patients.
Furthermore, the government office has confirmed the local transmission of the disease. The coronavirus disease has now escalated to over 90 territories.
This fatal ailment has reportedly infected over 100,000 people.
Plus, various international news outlets have confirmed that 3,400 people globally have already lost their lives due to the illness.
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