The benchmark Philippine Stock Exchange index is poised to gain this week, after a relatively positive trading before the Holy Week holidays, an analyst said.
According to Luis Gerardo Limlingan, managing director at Regina Capital Development, technical indicators showed that the PSEi “actually continues to gain momentum after it broke its almost three-month consolidation phase as it trades above 7,600.”
He said this week’s immediate resistance, or upside, was pegged at 7,700, initial support was at 7,430.
Helping shape the market’s direction would be economic indicators overseas, some of which were released while the Philippine financial markets are on break. Limlingan cited jobless claims in the United States.
Last week, the PSEi ended higher despite thin trading, typical before a long holiday.
The PSEi on Wednesday last week was up 0.37 percent, or 28.24 points, to 7,629.64 while the broader all-shares index was up 0.44 percent, or 19.77 points, to 4,552.69. A total of 755.6 million shares valued at P6.19 billion changed hands.
“Local markets ended on a positive note as investor sought refuge in the Philippines against other regions,” Limlingan said.
He noted that some investors grew concerned about geopolitical risks for the young Trump administration, and its commitment to an August deadline for tax reform. —MIGUEL R. CAMUS