MANILA, Philippines — Share prices are expected to climb higher this week, with immediate support seen at 7,000 and resistance from 7,200 to 7,300 level, according to 2TradeAsia.com.
It said the Philippine Stock Exchange Composite index (PSEi) has been taking the cue from global equity markets.
“The November ascent in global equities markets can be attributed to a myriad of factors, but a great motivator in buying was progress on the COVID-19 vaccine. Developing economies which will not be able to organically produce their own vaccine will have to closely coordinate on logistics aspect of distributing vaccines, which include challenges such as subsidies, vaccine education and side-effect monitoring; and follow-through efforts to ensure herd immunity. Any concerted program at the national level plus plans will be appreciated by the market and will be crucial in turning valuations higher,” 2TradeAsia said.
Last week, the PSEi gained 199.91 points, or 2.9 percent, sharply higher for the fourth week in five weeks.
Michael Ricafort of Rizal Commercial Banking Corp. gave this comment: “It is worth noting that the highest level reached for the PSEi last week was at 7,169.79 on Nov. 20, also the week’s close. It was also sharply higher by 21.6 percent or 1,271.32 points from the immediate low of 5,898.47 a little over a month ago.”
Since the start of 2020, the decline of the PSEi has already been reduced to 8.3 percent versus the 7,815.26 in end-2019.
From the low of 4,039.15 posted on March 19, the PSEi already gained by a total of 77.5 percent.
Ricafort said major market catalysts include further progress on vaccines for COVID-19, which may help improve economic recovery prospects and global market risk appetite, as well as the trend in new COVID-19 local cases and any additional measures to further re-open the economy.