Investors remain cautious as they await for some positive news before trooping back to the market.

BPI Securities noted that the market weathered the storm despite US market headed south dropping 2.1 percent on Thursday on report of an increasing jobless claims.

On Friday, BPI said investors were jittery, while volatility made the index dropped by 58 points but achieved a strong recovery in the latter part losing by only 8 points towards the close.

Week on week, the PSEi ended flat shy by a matter of 1.31. Support at 2,720. Resistance level is at 2,902.

Analyst Prince Anthony Yeung of AB Capital Securities expects the market to consolidate this week with a bias for the local stock market to move lower.

Yeung says the trading range is expected to be tight once again as investors are turning cautious.

“They do not want to hold too much stocks but at the same time, they want to stay in the game for fear of missing out on rallies. The continued concerns in the US, however, will put downward pressure on the local stock market.”

“A positive jobs data will push US markets higher and vice versa. If the DOW remains near its support at 9,500 then the PSEi will inch towards its own support level of 2,700. However, if the DOW bounces from its support then that will allow the PSEi to continue consolidating without having to test its support level.”

“Overall, investors are optimistic about the market for the rest of the year. In the short term, however, caution will prevail,” says Yeung.

Yeung noted that new found optimism on the local economy battled typhoon Ondoy and overseas concern as the local stock market was flat for the week.

“Investors were cautious given the events that occurred during the last weekend. Also putting downward pressure on the stock market were negative economic data that were released in the US.”

The PSEi has been consolidating since the start of August. As the weeks have passed, the trading range has also narrowed. The local stock market traded within a range of just 60 points, Yeung added.