Barring Middle East crisis, PSEi on ‘cusp of breakout’
The benchmark Philippine Stock Exchange index (PSEi) may return to 6,500 level this week if tensions in the Middle East continue to deescalate.
Chinabank Securities research director Rastine Mackie Mercado said the local stock market might see some sustained momentum after registering a four-day winning streak in the past trading week.
“Despite the volatility we saw [last] week, prevailing technical indicators suggest that the PSEi is still [on] the cusp of a breakout,” he said.
Mercado said that if “no further escalation occurs in the Middle East conflict, then we may see the market breaking above its 6,450 resistance.” He added this could also potentially lead to PSEi touching the 6,550 territory.
AP Securities Inc. research head Alfred Benjamin Garcia shared the optimism of Mercado.
“We expect a continuation of this trend [this] week, with eyes on the June inflation data scheduled for release on Friday,” Garcia said.
The inflation rate eased to 1.3 percent in May from 1.4 percent in April, thanks to cheaper utility costs and slower price growth in restaurants and accommodation services.
Stock brokerage 2TradeAsia.com pegged the immediate support at 6,300. Resistance was seen between 6,500 and 6,550, it added.
