PSEi gets no break from inflation woes
Another week of sluggish trading for local blue chips is seen this week due to global concerns on rising valuation of equities alongside the resurgence of inflationary pressures.
Last week, the Philippine Stock Exchange index (PSEi) lost 131.55 points or 1.9 percent to close at 6,794.86.
PNB Securities president Manuel Lisbona said investors largely took money off the table due to rising inflation concerns brought about by stimulus efforts by various governments.
“Of note was the sudden rise in bond yields intraweek, which prompted the revaluation in equities,” he said.
Lisbona noted foreign fund flows were still outward-bound. He said that for nine straight trading days, P7 billion worth of funds exited the market, which is already equivalent to around 30 percent of the total net foreign selling of P22 billion seen by the local market year-to-date. “Chart-wise, the market could test 6,612, which is the low for the year so far. Should the market break below that, we may find stronger support at 6,250,” Lisbona said.
“[A] good strategy investors could use is to cost-average: break their purchases into portions over several weeks or months depending on their preference,” he said. INQ
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