Index may climb this week

MANILA, Philippines — Share prices are expected to post an uptick this week with immediate major support for the Philippine Stock Exchange Composite index (PSEi) seen from 6,920 to 7,020 level, according to Rizal Commercial Banking Corp. chief economist Michael Ricafort.

These levels may prevent any further healthy downward correction or profit-taking in the near future, Ricafort said, adding that “ any sustained breach above the 6,980 levels in the coming days would still signal continuation of the underlying upward trend, going forward.”

The first important resistance, he said, would be at the 7,220 to 7,270 level as the break out points from the ongoing consolidation, as well as attempt to re-test the immediate high of 7,432.40 posted nearly two weeks ago or on Jan. 11.

Market investors, he said, would continue to look for positive catalysts that would encourage them to go back to the market.

The  PSEi corrected lower for the sixth straight day by 94.46 points or 1.3 percent to close at 7,045.83 last  Friday.

This marks a new two-week low or since Jan. 7, but nevertheless still near 11-month highs or since Feb. 26, 2020.

Ricafort attributed the decline in the PSEi to the recent announcement of business closures in the country  by Nissan’s car assembly operations and by Makati Shangri-La Hotel as indicators on some local businesses/industries adversely affected by the   pandemic in terms of lower demand and sales and less favorable business and  economic conditions.

Investors also continue to worry about new COVID-19 cases which lingered higher or near 2,000 per day last week, the highest in more than a month, as well as the detection of the new and more contagious coronavirus strain in the country more than a week ago.

The delay in the rollout of the Sinovac COVID-19 vaccine in the Philippines to March from February in view of the 10-day inspection of inbound COVID-19 vaccine shipments has also added to the uncertainties.