ILOILO City – The Philippine stock market ended the first quarter of 2018 on a relatively stable note.
Before the Holy Week break, the market hit above the 8,000 point level, allaying fears that it could plunge further to the mid-7,000 level amidst strong selling from foreign investors. The Philippines Stock Exchange index (PSEi) closed on March 28 at 7,979.83.
Technical analyst Hernan Segovia told Panay News that “fortunately, the market went back to 8,000 level after it breached that level to register around 7,900 last Wednesday. So this means that as we conclude the first quarter, we might see the index engage in some choppy range-bound trading for the first half (of the year).“
However, despite ending the first quarter on stable terms, the market remains weak due to foreign selling. The week ended with many foreign investors pulling out their capital from Philippine equities and transferring them to other markets.
Segovia thinks that the stock market will remain between the 7,800 to 8,400 point range for the rest of the year unless there’s a catalyst that will infuse the market with foreign funds. When asked if an external catalyst could come from foreign or global markets, Segovia concedes that it is a possibility.
“It’s a possibility, especially big capital flow from one market and flow into ours. Our market is currently suffering foreign selling; a constant selling pressure that lasted until Wednesday,” Segovia aid and predicts that if this pressure continues that the market will remain stagnant for the rest of the year./PN
