Upcoming equity offerings could rain on PSEi’s parade

The local stock barometer will attempt to conquer the elusive 8,000 barrier in the coming days albeit liquidity may thin out as investors prepare for soon-to-launch large equity offerings.

Last week, the main-share Philippine Stock Exchange index (PSEi) added 58.85 points or 0.7 percent to close Friday at 7,992.32.

“It looks like the market is preparing for a break to the upside in the next few sessions. Volatility has been subsiding the past few sessions due to the lack of fresh catalysts,” PNB Securities president Manuel Lisbona said. “The index is a hair away from the 8,000 psychological resistance. A sustained close above which should beckon more of the bulls to return.”

But if the PSEi would fail to stay afloat this level, Lisbona said it would continue to consolidate within the range of 7,740 to 8,000.

Lisbona said the equity offerings by Axelum Resources and AllHome alongside a preferred share offering from Phoenix Petroleum and a fresh bond foray by San Miguel Corp. may also affect the market.

BDO Unibank chief strategist Jonathan Ravelas said market participants had stayed on the sidelines ahead of the US Federal Reserve meeting scheduled on Sept 19.

“The week’s close at 7,992.32 continues to signal the market to consolidate within the 7,700 to 8,000 levels in the near term,” he said.

Papa Securities said this week’s Fed meeting could be the next market catalyst, with the consensus expecting a second interest rate cut. —DORIS DUMLAO-ABADILLA