PSEi may rise further this week

MANILA, Philippines — The Philippine Stock Exchange’s main composite index is expected to climb higher this week with the next resistance level  seen at 6,600,according to  analysts.

According to Michael Ricafort, chief economist at Yuchengco-owned Rizal Commercial Banking Corp., the market’s continued strengthening could lead to further upside potential toward the 7,000 to 7,500 level.

So far the PSEi has already gained a total of 60.1 percent from the low of 4,039.15 posted on March 19, but still lower by 17.3 percent since the start of the year or from the end-2019 level of 7,815.26.

Ricafort said the market would continue to look for positive catalysts.

“Major upcoming leads and catalysts include any further re-opening or re-starting of more economies worldwide that could improve investment valuations, any further decline in new coronavirus disease 2019 or COVID-19 cases in previously hard-hit countries such as the US and other European countries, additional large stimulus measures and quantitative easing (QE) measures, especially in the euro zone and in other countries, further progress on local reform measures such as the economic stimulus package and CREATE Bill, and the latest trade data on June 10,” he said.

In all, sentiment on the local equities market for the past week has been largely supported by S&P’s affirmation of the Philippine credit ratings at two notches above the minimum investment grade with stable outlook despite the downgrade on some countries worldwide.

This, he said, shows a sign of resilience and a strong vote of confidence by international investors on the country’s relatively stronger economic and credit fundamentals in recent years.