MANILA, Philippines — Investors will keep a close eye on the country’s inflation data and the release of more corporate earnings results this week to serve as catalysts for a potential climb back to the 7,000 mark.
While the Philippine Stock Exchange index (PSEi) capped off last week in the red at 6,919.59, it was still able to finish better compared to the previous week.
Japhet Tantiangco of PhilStocks Financial said the local market is already on a six-week winning streak, but last week’s gains have been thin at 0.09 percent.
He said this implies that selling pressures are close to taking over.
“Also, the market tested and failed to hold ground above the 7,000 level implying that it may not be prepared yet to take the said resistance,” Tantiangco said.
The PSEi managed to reach an intraday high of 7,005.30 on March 1, 2024.
For this week, Tantiangco said investors may take cues from upcoming inflation data.
“An inflation print significantly higher than January’s 2.8 percent may cause a pullback for the local market. Investors may also watch out for our upcoming labor market data as this would give clues on the health of the general economy,” he said.
Investors are likewise expected to continue monitoring 2023 corporate results.
“Whilst mixed, more of the results that have been released so far have shown better full year 2023 bottom lines compared to the preceding year. If this trend continues, then it may help in sustaining the positive sentiment in the market,” Tantiangco said.
Major support for this week is seen at 6,700, while major resistance is at 7,000.