Pessimism may continue to rule stock market
The COVID-19 crisis may continue to cast dark clouds on the stock market this week.
Last week, the main-share Philippine Stock Exchange index (PSEi) lost a total of 116.74 points or 1.8 percent to close at 6,378.07.
With new infections still hitting close to 10,000 per day, there are concerns on how long the government would keep tight lockdown protocols gnawing on economic growth.
The market will likely remain on a downturn, said Manny Cruz, chief strategist of Papa Securities.
“Elevated virus cases and lack of vaccines will continue to weigh down market confidence. Failure to suppress the pandemic will require more restrictions in place that may result in the extension of quarantine status next month,” Cruz said. He sees the PSEi finding support at the 6,200 level.
Jonathan Ravelas, chief strategist at BDO Unibank, said last week’s close could mean the market still marching to 6,300. A break below that support could accelerate the PSEi’s fall to the 5,700 to 6,000 levels, he added.
