ILOILO City – After several weeks of continuous drops, the stock market is showing signs of recovery or at least stability. The market ended almost at the 7,200 level last week, a far cry from the 6,900 point fall that occurred earlier this month.
Technical Analyst Hernan Segovia says that this is a positive sign but remains reserved until further data comes in.
“Last week we’ve seen the market Seesawing. In fact, it’s quite volatile for the market this week, but luckily we’ve seen it bottom out at 7,100,” Segovia said, “Hopefully, we have seen the market bottoming out in the short term, and we have a wait and see attitude among those who are in the side lines.”
Segovia also reports that blue chip stocks still remain cheap, though they are starting to go up. So he recommends interested buyers to be cautious if they want to enter the market at this time.
Segovia also explains that the market will not truly recover from its slump until investors have factored in the political situation Philippines, and inflation as well as interest rates have been stabilized.
“If the market starts to digest all the negativity of the other regional markets, the US, the Euro, the Duterte Effect, the Trump Effect, we can see the market go up to 7,400,” Segovia said but would not comment on any possible further development beyond that./PN
