US baton seen conducting PSEi moves
The local bourse’s recovery this week may still depend on developments in the United States, especially after President Donald Trump’s latest import tariff announcement.
Stock trading platform 2TradeAsia.com said in an advisory over the weekend that while companies had been generally posting favorable financials, these were outweighed by external factors.
Anxiety over Trump’s pronouncement of a 25-percent import tariff on all automobiles, pharmaceuticals and semiconductors spooked traders last week.
Despite this, the benchmark Philippine Stock Exchange Index (PSEi) was able to post a 0.61-percent gain to close the week at 6,098.04.
So far, the bourse has dipped by 6.9 percent from its value at the beginning of the year, which was pegged at 6,550.39.
According to 2TradeAsia, weak currency, lack of catalysts and attractive alternative assets —such as fixed-income securities — are making it difficult for investors to go back to equities. “Expect protracted risk-off sentiment pending stabilization of external noise, particularly concerning inflation-interest rate trend and geopolitics as Q2 (second quarter) approaches,” 2TradeAsia said in its advisory.
The company sees the market’s psychological support level at 6,000 and resistance at 6,300 to 6,400.
