PSEi faces profit-taking, market caution
The stock barometer’s recent rally could be challenged this week as investors are seen to lock in gains. Recent global and local developments are weighing on the market’s momentum.
Philstocks financial research manager Japhet Tantiangco said the local market has been showing “a bullish bias” for the past three weeks.
Foreign investors have also been providing support, with a net inflow of P2.16 billion.
“With a three-week run, however, we may see strong selling pressures next week driven by profit taking,” he said in a message to reporters.
“Investors may also move with more cautiousness while waiting for new catalysts,” Tantiangco added.
Key factors
Among the key factors the investors are monitoring include the US-Venezuela conflict and the Bangko Sentral ng Pilipinas’ policy movements for the year.
They are also monitoring the local currency’s performance against the US dollar as well as the Philippine economy’s growth outlook.
On Friday, the Philippine Stock Exchange Index ended the trading week stronger, hitting 6,348.14.
Tantiangco said that if the index manages to move past 6,400, its next resistance would be at 6,600.
“From a technical standpoint, recent price action points to strong selling pressure around the 6,350-6,400 resistance,” said Rastine Mercado, China Bank research director. “If this continues to hold in the coming week, then we could see prices pull back towards the 6,200 level.”
