Philippine stocks to move sideways this week

Philippine stocks are expected to move sideways this week, with hopes of further monetary easing and bargain hunting providing some support.

On Friday, the PSEi rose by 0.38%, closing at 6,315.93, while the broader all shares index increased by 0.21%.

Despite the weekly gains, the PSEi fell by 0.37% week on week from August 8th as investors weighed potential Federal Reserve rate cuts and local economic concerns.

Philstocks Financial Inc.'s Research Manager Japhet Louis O. Tantiangco expects Philippine shares to remain range-bound this week with support at attractive levels for bargain hunting, but no strong rally expected without fresh positive leads.

BSP Governor Eli M. Remolona indicated a 'quite likely' rate cut at the Aug. 28 policy meeting due to benign inflation and external uncertainties, with two more cuts expected this year.

Technical analysis suggests the PSEi will trade between 6,150 and 6,400 this week, while Rizal Commercial Banking Corp.'s Chief Economist Michael L. Ricafort sees support at 6,204.04 and resistance at 6,591.94.