PSEI moves to calm ghost month anxiety

The stock barometer will seek to stay above the 8,000 mark this week, the last full week of the “ghost month” period when investors turn extra cautious.

The main-share Philippine Stock Exchange index (PSEi) gained 64.18 points or 0.8 percent to close last Friday at 8,022.75.

BDO Unibank strategist Jonathan Ravelas said the PSEi had traded sideways as investors took a defensive posture on continued rising geopolitical tensions caused by North Korea.

Market players would remain on the sidelines seeking fresh leads to sustain prices above the 8,000 levels, Ravelas said.

“Chart-wise, the week’s close at 8,022.75 continues to highlight that the market still has momentum to try the 8,100 to 8,150 levels,” Ravelas said.

“Continue to see tests toward the 8,000 to 8,150 levels,” he said, adding that immediate support and resistance were at 7,850 and 8,100 levels, respectively.

This week will be the last full week of the “ghost month” period, a time when many investors avoid making heavy investments. The ghost month will end on Sept. 19.

In global markets this week, Citigroup said US core inflation would likely be in focus ahead of the Federal Open Market Committee meeting on Sept. 20.

In Europe, Bundesbank president Weidmann will speak on monetary policy on Thursday.

“We expect UK core CPI (consumer price index) to pick up to 2.6 percent year-on-year, but uncertainty around Brexit (whose bill will be voted on Monday) will keep the BoE (Bank of England) on hold (7-2 majority),” Citi said.