Vulnerable PSEi struggling to keep morale up

The Philippine benchmark index could weaken further as investors remained cautious about the economy.

In an advisory to investors, BDO Unibank Inc. chief strategist Jonathan Ravelas sees the Philippine Stock Exchange index (PSEi) trading between the 5,700 and 6,000 levels for the week.

But he warned the decline in recent days pointed to the PSEi’s “vulnerability to sell-offs.”

The PSEi dropped 1.19 percent to 5,838.66 as of Friday last week. This was the second straight week of decline, Ravelas noted.

“Consumer confidence fell to a record low in the third quarter, while the financial condition of businesses worsened and access to credit tightened, according to results of the central bank’s survey,” Ravelas said.

“This further soured investor confidence,” he added.

Ravelas said interest rates would also continue on a sideways trajectory in the near-term.

Meanwhile, the Philippine peso is expected to consolidate between P48.30-P48.60 against the greenback. —MIGUEL R. CAMUS INQ