Stocks seen to continue testing 8,000 level

The local stock market is seen continuing to consolidate this week, with the 8,000 level remaining a stubborn barrier in the absence of fresh catalysts.

Last week, the Philippine Stock Exchange index (PSEi) fell by 0.7 percent to close at 7,958.57 on Thursday ahead of the long weekend break.

The market was closed on Friday in observance of the Islamic holiday Eid’l Adha or Feast of Sacrifice.

BDO Unibank chief strategist Jonathan Ravelas said the market had succumbed to profit-taking after failing to stay above 8,000.

“The market is waiting for fresh leads to sustain prices above the 8,000 levels,” he said. “Chartwise, the week’s close at 7,958.57 continues to highlight that the market still has momentum to try the 8,100 to 8,150 levels.”

Ravelas sees the PSEi’s immediate support and resistance levels at 7,850 and 8,100, respectively.

On Friday, US stocks closed higher on upbeat August jobs data.

Meanwhile, the peso appreciated by 0.18 percent last week as geopolitical tension over North Korea waned. The peso recently hit a low of 51.63 against the dollar, an 11-year low, Ravelas noted.