PSEi faces difficult ascent to 6,300

Bulls managed to keep the Philippine Stock Exchange index (PSEi) steady at 6,200, although volume remained thin and stocks continued to face downside risks, a market expert said.

The PSEi gained nearly 1 percent to finish the past week at 6,269.50, data from the stock exchange showed.

Stock market veteran and senior adviser at Reyes Tacandong & Co. Jonathan Ravelas said the index continued to trade below the 6,300 resistance target.

Chart-based technical traders see resistance areas as potential pullback zones, however, a breakout past resistance could push stocks even higher.

Ravelas said risks remained as much of the headwinds investors faced in 2023 would likely persist in 2024. Catalysts that could provide relief to the market include government efforts to ramp up infrastructure spending and the recent Israel-Hamas truce.

In a separate note to investors, Michael Ricafort, chief economist at the Rizal Commercial Banking Corp., also pegged the 6,300 as the next resistance level for the PSEi.

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He said this level served as the next gateway before “further upside potential toward a retest of the immediate high of 6,412.94.”

Meanwhile, major support could be found from 6,100 to 6,055, he said. —Miguel R. Camus INQ