June 24, 2019
THE stock market could go either way this week as a number of events could buoy investor sentiment, but the likelihood of profit-taking remains high.
In a market note over the weekend, online brokerage firm 2tradeasia.com said market players would watch out for any cues on the trade issues between the United States and China during the Group of 20 (G20) meeting in Osaka, Japan, on June 28 and 29.
“The rest of the world will be eyeing as to what would run next in the ‘Trump-Xi’ cards, especially on the aspect of tariffs,” it said.
“Volatility could arise if another extension of the status quo is met, with indications of slower global growth already being flagged,” it added.
US President Donald Trump and his Chinese counterpart Xi Jinping are set to meet on the sidelines of the meeting, months after both parties backtracked from a supposed trade deal following concerns over intellectual property provisions and continued to impose tit-for-tat tariffs worth billions of dollars on each other’s goods.
Meanwhile, with the second quarter ending on Sunday, AAA Southeast Equities Inc. research head Christopher Mangun said firms’ earnings results for the period were expected to be released in the following weeks.
“With…earnings coming out…and with companies across the board expecting robust growth, this could be the fuel that this market needs to go higher,” Mangun added.
He said, however, that a pullback was still possible to take advantage of the PSEi’s five weeks of successful finish in the green.
Last Friday, the bellwether Philippine Stock Exchange index grew by 0.41 percent or 33.05 points to close at 8,055.47. The broader All Shares rose by 0.75 percent or 36.43 points to finish at 4,927.81.
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