PSEi finds courage as ghost month looms
With the ghost month looming and looking to create uncertainties, companies with strong earnings prospects and the US Federal Reserve’s upcoming policy meeting could yet be the bourse’s saving grace this week.
In what could be a preview of things to come, the benchmark Philippine Stock Exchange Index (PSEi) slipped to 6,726 last Friday, down 0.97 percent from the previous week, overturning four weeks of continued rally.
However, trading platform 2TradeAsia.com said the stock market could be boosted by upcoming first semester earnings results from BDO Unibank Inc., Manila Electric Co. and Semirara Mining and Power Corp.
Analyst briefings, which typically precede earnings reports, have already been scheduled for these companies later this week.
“Banks so far have continued to reaffirm our outlook for the year,” 2TradeAsia said in a statement.
So far, only Bank of the Philippine Islands (BPI) has reported its financials among the listed banks, but 2TradeAsia expects both BDO and Metropolitan Bank and Trust Co. to also deliver strong results.
Ayala-led BPI posted record earnings—up by 21.5 percent to P30.6 billion—in the January to June period.
“Momentum generated by an improving macro backdrop—inflation and growth—are likely to persist,” 2TradeAsia said.
Meanwhile, Japhet Tantiangco, research manager at Philstocks Financial Inc., said investors would also be looking to the Federal Reserve for clues regarding its latest policy outlook.
“If the Fed gives a dovish outlook, this may spur optimism in the market,” he said.
2TradeAsia warned the upcoming “ghost month” could still “increase friction in the short-term.”
The period, which typically falls in August, is believed by some cultures to bring bad luck, causing financial losses, among others.
2TradeAsia sees immediate support at 6,600 to 6,650, and resistance at 6,850.
