The Philippine Stock Exchange index (PSEi) may experience a period of consolidation following a rebound from the recent market slump. Last week, the PSEi surged by 3.85 percent to close at 6,624.79, driven by easing inflationary pressures and improved global economic outlook.
Investors are expected to take profits after the sharp rise in stock prices, but there is also likely to be buying activity as investors position themselves ahead of President Marcos’ State of the Nation Address and the US Federal Reserve’s policy rate announcement later this month, according to Juan Paolo Colet, managing director at investment bank China Bank Capital Corp.
Colet also emphasized the importance of foreign fund flows, as sustained net foreign buying is crucial for the market’s strength. He added that if the index holds above the 6,530 to 6,580 support zone and closes above 6,600 by the end of the week, it could set a base for further bullish action heading towards the end of July.
Michael Ricafort, chief economist at the Rizal Commercial Banking Corp., noted that the PSEi has gained 2.4 percent since the start of 2023, largely due to the recent gains. He identified the next major resistance level at 6,730 to 6,830, with major support at 6,250.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
