Index seen climbing anew this week

MANILA, Philippines — Share prices are expected to trade with  immediate support from 6,880 to 6,910 level this week, which may help prevent further healthy correction and consolidation at the moment, analysts said.

The Philippine Stock Exchange Composite Index (PSEi) corrected higher last week after declining for two straight days.

According to Michael Ricafort, chief economist at   Rizal Commercial Banking Corp., the market’s immediate major resistance is seen at 7,100 level, which serve as a gateway prior to further upside or any sustained break above 7,100 levels in the coming days.

“This could potentially retest the 7,432.40 high posted on Jan. 11,” Ricafort said.

The PSEi rose by 76.77 points or 1.2 percent to close at 6,926.41 on Feb. 19.

This is still among two-week lows or since Feb. 5, but Ricafort said this is still near one-year highs or since March 5, 2020.

Factors that affected the market’s movement include President Duterte’s upcoming decision on the proposed move to change the quarantine status of Metro Manila to modified general community quarantine from general community quarantine.

Most Metro Manila mayors recommended to ease the quarantine status.

Moving forward, Ricafort said investors would continue to wait for the deployment of COVID-19 vaccines in the country.

Major external factors, meanwhile, include increased COVID vaccine rollouts at more than 193 million globally that partly resulted in some easing of new COVID-19 cases in the US and in some countries worldwide.

Since the start of February, the PSEi already gained by 4.7 percent after the healthy downward correction of 7.4 percent in January, which in turn, came after gaining in the previous three straight months.

The PSEi rose 5.1 percent in December 2020, 7.4 percent in November 2020 and 7.8 percent in October 2020.