PSE may climb this week

MANILA, Philippines — Share prices are expected to climb this week with next resistance  seen at the 6,000 to 6,150 level, which may be the next gateway prior to further gains, according to  analysts.

Last week, the PSEi corrected higher after declining for two straight days, up by 65.57 points or 1.1 percent to close at 5,967.96.

This level is also among the highest in six months, or since March 12, amid some moves by local authorities to further open up the economy, including public transportation systems that could boost prospects of an economic recovery in the coming months.

In all, the PSEi gained for the first time last  week by 182.87  points after declining for three straight weeks.

“The easing of new COVID-19 cases from record highs recently, together with moves to further re-open the local economy from lockdowns, somewhat supported sentiment on the local financial markets, including the PSEi. This  could also help improve economic recovery prospects and investment valuations, going forward,”  Michael Ricafort of Rizal Commercial Banking Corp. said.

He said the 5,700 to 5,800 level  has been proven to be a strong support during the period of consolidation over the past two months.

Moving forward, Ricafort said the upcoming catalysts would come  from the trend in new COVID-19 cases, measures to further re-open the local economy from lockdowns that also help economic recovery prospects, as well as the latest OFW remittances data to be released on Sept. 15.

First Metro Investment Corp. head of research Cristina Ulang sees the market moving sideways and trading in a narrow range from 5,900 to 6,000 on lack of catalysts and bouts of weakness on Wall Street.

However, she said OFW remittances could provide a pleasant surprise and help push a break above the 6,000 level.