PSEi may pass 8,000 this week

MANILA, Philippines — The Philippine Stock Exchange index is expected to attempt anew to breach the 8,000 mark this week, if there will be enough market catalysts, according to traders.

The benchmark Philippine Stock Exchange index is likely to form on solid base around the 8,000 mark, they said.

“The market appears ripe to form on solid base within 7,900 to 8,000 for now, pending catalysts on the external side,” according to a report by 2TradeAsia.com, an online market research portal.

It noted that an attempt at a stronger or above the 8,000 mark may happen if there are strong catalysts.

One such driver can be the result if second quarter and second half corporate earnings.

“A review of first semester earnings is in place and guidance for second half earnings will be watched out for. This early several are anticipating for improved second quarter GDP on the back of approved fiscal budget, plus higher consumer spending,” it said.

But for the most part, traders said market investors would be looking for stronger market catalysts that would dictate the tone of the index in the longer term.

The Philippines’ growth story could be one such factor.

“Overall, attention should build up on the Philippines’ growth angle, starting with infrastructure line up, accommodative monetary policy, plus fiscal expansion stories,” 2TradeAsia.com said.

It cited for instance the potential of the real estate investment trust (REIT) regime to deepen the capital markets.

“Upsides are in store for property REIT prospects, plus reclamation projects and allied undertakings that support the build up of industrialized communities across provinces,” it said.

Last week, the main index ended in the red at 7,999, which caps a five-week streak of ending higher. However, it did end right at the brink of the 8,000 key-level after being down a lot in the last few days of the week.

In all, the PSEi ends the month of June up a third of a percent.

“This is the fourth month in a row that it ends with gains. It has been trading within its range of 8,000 and 8,150 although it did close less than one point short of the 8,000 key-level last Friday. If it goes lower, the next major support comes in at 7,880,” said Christopher Mangun of AAA Securities.