Investors will seek direction on upcoming economic data in a bid to get the stock market out of its recent slump.

The benchmark Philippine Stock Exchange index ended in a sour note last Friday at 6,615.55, down by 0.20 percent week-on-week.

Japhet Tantiangco of PhilStocks Financial said investors are still moving in a cautious tone, evidenced by the profit taking seen last week as well as the tepid trading activity.

'Also, the market was unable to hold its position above the 6,700 level last week, implying that a resistance remains at the said line,' he said.

For this week, Tantiangco said there is a possibility of seeing episodes of bargain hunting.

'However, ultimately, the market's could still be dependent on our upcoming economic data. Investors are expected to watch out first for our April inflation report,' he said.

According to Tantiangco, an inflation print exceeding the upper end of the government's two to four percent target may cause negative sentiment in the market.

'Investors are also expected to watch out for our upcoming Q1 GDP (gross domestic product) report with the Q4 2023 GDP growth of 5.6 percent as their benchmark. A Q1 GDP growth above 5.6 percent may spur optimism, while one that falls below, may weigh on the bourse,' he said. said index movement has been capped by intraday selling pressure, keeping rallies short and the overall trend generally unexciting.

'Positive gaps in the chart open up opportunities for range trading and modest gains in the very short term,' it said.

Support is seen at 6,400 to 6,500, while resistance is seen at 6,700 to 6,750

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