PSEi to move sideways as market looks for leads

YouTube working on tool that lets creators sing like Drake

PHILIPPINE SHARES may move sideways this week, with profit taking likely to ensue following the market’s rally and as most players remain on the sidelines as they await stronger catalysts.

On Friday, the benchmark Philippine Stock Exchange index (PSEi) rose by 0.14% or 10.06 points to close at 6,913.21 on Friday, while the broader all shares index climbed by 0.17% or 6.29 points to finish at 3,608.12.

Week on week, the bellwether index rose by 0.58% or 39.98 points from its 6,873.23 close on Feb. 16.

“Positive earnings helped the PSEi inch closer to 7,000 [last] week despite rising global recession fears,” online brokerage firm said in a market note.

For this week, the market may be range-bound as investors pocket their gains, Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

“The local market is already running on a five-week winning streak with a total gain of 6.30%… However, trading remains anemic as seen in the low value turnover, implying that many are still on the sidelines,” Mr. Tantiangco said. “[This] week, the local market could move sideways. We may see strong selling pressures as investors take profits from the market’s preceding five-week rally.”

“On a positive note, optimism towards our corporate sector’s fourth quarter and full-year 2023 results may continue to provide support to the bourse. Record-high performances from Wall Street, if continued, may also produce positive spillovers that would help the local market,” he added.

The market will also monitor the release of the February S&P Global Philippines Manufacturing Purchasing Managers’ Index report on Friday, Mr. Tantiangco said.

He put the PSEi’s major support at 6,700.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort placed the index’s immediate minor support from 6,580 to 6,740.

“Immediate major support at 6,330-6,450 levels, which help keep intact the underlying upward momentum over the past three and a half months,” Mr. Ricafort said in a Viber message.

The release of the latest budget balance data this week could affect the stock market, he added.

For its part, put the PSEi’s immediate support at 6,800 and resistance at 7,000.

“The PSEi has so far held on to the 6,900 level, and is even showing signs of potentially being able to out-stamina the selling pressure around the 7,000 mark. The question of rates going down later in the year is a major force impacting this run, amid significantly improved earnings across sectors,” the online brokerage said.

“Expect more of this heightened volatility as the market attempts to price out this tension,” added. — R.M.D. Ochave

#PSEi #move #sideways #market #leads

About Author

Leave a Reply