MANILA, Philippines — The stock market will try to hold on to the 6,700 level this week as investors will be on the lookout for inflation data and corporate earnings results.
The benchmark Philippine Stock Exchange index (PSEi) was able to finish in positive territory last Friday at 6,707.25, up 0.32 percent week-on-week despite average market turnover declining by 23.44 percent from the previous week.
“The local market was able to close above the 6,700 level, which is considered to be a strong resistance. However, value turnover remained tepid on average, implying that the market’s rise still has weak conviction,” Japhet Tantiangco of PhilStocks Financial said.
For this week, Tantiangco said investors are expected to watch out for January inflation data.
He said an inflation print lower than December 2023’s 3.9 percent, especially one which is near or within the Bangko Sentral ng Pilipinas’ target of 2.8 to 3.6 percent, may spur market optimism.
Aside from this, Tantiangco said investors may also watch out for the upcoming labor force survey for clues on the health of the economy.
“If the market succeeds in sustaining ground at 6,700, this will be its new support while a minor resistance is seen at 6,800. If the market fails however, the market may retest its 10-day exponential moving average,” he said.
2TradeAsia, for its part, said corporate results would go a long way in helping the PSEi inch closer to the 7,000 level, amid a more exciting macro backdrop at present.
“The PSEi managed a trek in the psychological support zone of 6,700–positive corporate results will be critical in directing investor energy toward getting this toward 7,000,” it said.
2TradeAsia sees immediate support at 6,600, while resistance is at 6,900 to 7,000.