Index may post gains this week
MANILA, Philippines — The Philippine Stock Exchange index (PSEi), the stock market gauge, is expected to gain ground this week with immediate support level at 6,000 to 6,200,according to Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC).
The market’s immediate major resistance may be at 6,380 level, which is a gateway prior to further upside potential especially to retest the 6,400 level and then possibly the 6,583.84 immediate high posted on June 9, Ricafort said.
On Friday, the PSEi gained for the fourth straight day, up for the fifth day in six days to close at 6,372.66, a new two-week high since June 19.
It is also near four-month highs since March 11 or shortly before the enhanced community quarantine.
The PSEi gained by 180.82 points or 2.9 percent last week after declining for two straight weeks.
Since the start of 2020, the PSEi declined by 1,442.60 or 18.5 percent from the end-2019 level of 7,815.26.
In 2019, the PSEi gained by 349.24 points or 4.7 percent.
Major leads and catalysts which market investors would be looking into this week include the latest inflation data and gross internal reserves data on July 7, trade data on July 10, trend in local and global COVID-19 cases.
“The global financial markets would also take cue on any further progress on possible vaccine or cure against COVID-19 that recently supported sentiment and the recent gains,” Ricafort said.
Meanwhile, global oil prices fell below $43 a barrel on Friday as a resurgence of coronavirus cases raised concern that fuel demand growth could stall, although crude was still headed for a weekly gain on lower supply and wider signs of economic recovery.
The United States reported more than 55,000 new coronavirus cases on Thursday, a new daily global record for the pandemic. The rise in cases suggested US jobs growth, which jumped in June, could suffer a setback.
“If this trend continues, oil demand in the region is at risk,” said Louise Dickson of Rystad Energy.
Brent crude was down 38 cents, or 0.9%, at $42.76 a barrel by 12:03 p.m. EDT (1603 GMT), and U.S. West Texas Intermediate (WTI) crude fell 44 cents, or 1.1%, to $40.21.
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