PSEi may climb past 8,000 level this week

MANILA, Philippines — The Philippine stock market may try to climb past the 8,000 mark again this week.

“The next resistance now comes in at 8,150 which has been the dreaded support since hitting that level back in January,” said Christopher Mangun of AAA Securities.

He said a successful break above this level would trigger a bull run which may lead back to the previous all-time high of the Philippine Stock Exchange index at 9,000. 

He said there is also a possibility of a pullback happening again this week.

“However, the main index has ended positive for the last five weeks which means there is a strong possibility that we see a pullback next week. The last time that we saw the main index end in the green for six weeks in a row was back at the beginning of 2015,” Mangun said.

Moving forward, Mangun believes that the stock market might see a rally especially when second quarter earnings come in better-than-expected.

“We are still very confident that we will see a rally soon. With second quarter earnings coming out in the next few weeks, and with companies across the board expecting robust growth, this could be the fuel that this market needs to go higher,” he said.

Last Friday, the stock market index finally ended the week above 8,000 after hovering around this level for the last four weeks. 

It was also a crucial week for equities markets around the world as the US Federal Reserve decided to keep rates as it is.

Following this, the Bangko Sentral ng Pilipinas also held its policy meeting and decided to keep interest rates unchanged.

The market saw an average total turnover value of P36.39 billion. 

Foreign selling continued with foreigners remaining net-sellers with P444.1-million leaving the stock market, although majority of trading last week was done by foreign traders. 

In all, Mangun said it’s only a matter of time before the index recovers again which could signal the beginning of a bull run.

“The mining and oil sector gained the most this week while the property sector was the only index that was down. Overall, we had a strong close on the PSEi as it closed at the high of the week. This is a very positive signal. This may be the beginning to the bull run that we have been waiting for since the beginning of the year,” he said.