PSEi seen testing 6,700 on earnings boost
The local stock barometer may attempt to test the 6,700 level this week as improving corporate earnings and renewed foreign buying boost investor confidence, according to brokerage 2TradeAsia.
In its weekly outlook, the brokerage said optimism over corporate results helped power the benchmark Philippine Stock Exchange Index (PSEi). It climbed 146 points or 2.26 percent week on week to close at 6,611.
Ron Acoba, chief investment strategist at Trading Edge Consultancy, said trading in the PSEi is seen to “normalize” following last week’s rebalancing.
“The index remains in position to extend its ongoing year-to-date advance after successfully moving past its 6,500 resistance,” Acoba said.
Stocks in mining as well as oil and services led the gains. They rose about 6 percent and 5 percent, respectively.
Market participation also improved sharply. Average daily turnover surged 143.6 percent to P12.96 billion.
Net foreign inflows reached P1.27 billion — much higher than the prior week’s P108 million.
Market breadth turned positive, with advancers beating decliners, 110 to 85.
Despite the strong finish, 2TradeAsia expects investors to adopt a cautious “wait-and-see” stance early in the week, with attention focused on inflation data and key global economic reports.
“Locally, the February inflation print remains the primary domestic catalyst,” the brokerage said, noting that easing price pressures could give the Bangko Sentral ng Pilipinas (BSP) room to maintain a less hawkish stance.
For the week, immediate support is seen at 6,300, while resistance is pegged at 6,700, which could serve as the next psychological hurdle for the market.
