Stocks may have slight upward bias this week

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Analysts are cautiously optimistic about prospects at the local stock market given the resilience showed by the PSEi last week although risks posed by global supply disruptions and inflation remain.

Last trading week, the local market managed to close still at its 7,000 – 7,100 support range. Also, the market was able to breach its 200-day exponential moving average. These are seen as positive signs for the local bourse,” said Philstocks Financial Senior Supervisor for Research Japhet Tantiangco.He added that, “This week, the local bourse could move sideways with an upward bias on the back of the positive developments in its chart.

“Despite bias being slightly skewed to the upside, we recognize downside risks that can warrant a rerating prior to official first quarter of 2022 results,” said 2TradeAsia.com. “While better immunization reassures that any future waves will not be as impairing as in the past, any lockdown or restriction risk still is still cause for concern, particularly for cyclicals that are currently struggling from fragile operating margins,” 2TradeAsia.com said.

With the economy reopening amid rising inflation, Abacus is recommending a BUY for two retailers, All Day Marts and Puregold Price Club, which it sees as having been sold down on the perception that they will not benefit from higher mobility.

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