The local stock barometer is seen striving to stay afloat the 8,000 mark this week as the period of caution under the “ghost month” ends tomorrow.
Last week, the Philippine Stock Exchange index (PSEi) gained 1.97 percent to end on Friday at a record high 8,180.85 on optimism on the Duterte administration’s tax reform program.
BDO Unibank chief strategist Jonathan Ravelas said the PSEi’s rally for the second straight week was spurred by expectations that the Senate would try to pass the tax reform program close to the proposal of the Department of Finance.
Investors likewise cheered the decline in Philippine jobless rate to 5.6 percent year-on-year from 5.7 percent in April and 6.6 percent in January, Ravelas said.
“Chartwise, the week’s close at 8,180.85 highlights the market is gaining momentum to sustain the rally above 8,000,” Ravelas said.
“If the rally is sustained, we continue to see a breakout of a consolidation and could lead to a test of at least 8,300 levels.”
Immediate support level is seen at 8,000 over the near term. —DORIS DUMLAO-ABADILLA