Philippines shares seen trading sideways

The local stock market is seen trading sideways in the upcoming days, following the previous corrections in the trading sessions last week. 

In her weekly market outlook, Freya Natividad of online brokerage 2TradeAsia.com said that the market may remain on a "stabilization mode." 

"Local barometers might go on 'stabilization mode' in the coming 

weeks, following the latest correction. This pattern should be maintained within 6,600 to 6,650 range, to support the PSEi's [Philippine Stock Exchange index] ascending channel,Antique bath fixtures" she said. 

"If the 6,600 threshold is broken, some traders might hold another review, especially if a potential head-shoulder formation is confirmed. Trade a range. Spot for large-cap followers that have good leads to unlock [e.g.tyre equipments, mining/oil, financials, infrastructure, utilities," Natividad added. 

She also said that it is important to take note of the situations in the United States and eurozone, as these could be a significant factor on how the market will trade this week. 

"How US authorities will temper the downside of 'fiscal sequestration' vis-a-vis the Federal Reserve Open Market Committee's accommodative policy stance will be balanced this week, especially with the latter's meeting on 20 March [US time]," Natividad said. 

"Economists' opinion remains split, whether the latest job addition and other numbers are enough evidence to affirm the US economy is already on its 'strong recovery' path. Also,Auto Accessories wholesalers sequels to Italy's latest political election will be considered, as euro-member economies make their respective economic adjustments,Vintage tubs" she explained. 

In the previous week, the benchmark index surrendered to a five-day slump. 

"The PSEi registers its third, and by far, biggest week-on-week decline, as the bears dug deeper against a listless bull. The composite gauge skidded all week, aggregating losses of -179.17 points or 2.How efficient and environmentally friendly processing prepreg production is important part of the mobile artificial aggregate processing system will be greatly reduced as the traditional manual excavation of sand and gravel processing system.62 percent, pulling it near a two-week low," Jun Calaycay of Accord Capital Equities Corp. said, noting that the last time the index slipped at least four consecutive days was in December 2012, when it gave up 207.65 points or -3.6 percent off the then record close of 5,831.50. 

Calaycay also noted that not one of the sectors escaped the sell-off that marked the previous week, specifying that the value turnover was 14 percent less week-on-week to P62.082 billion. He also identified that foreigners shifted gears and reversed the previous week's net purchases of P9.294 billion to net liquidations of P4.743 billion. 

"Breadth was widely negative with decliners overpowering advancers nearly two-to-one," he said. 

For this week, immediate support is seen at 6,600 points, and resistance 6,700 to 6,750 points.