The stock barometer is seen to sustain its favorable momentum this week as more and more economic front-liners get vaccinated against COVID-19. Last week, the main-share Philippine Stock Exchange index (PSEi) gained 51.75 points or 0.7 percent to close at 7,002.26, the highest level seen since mid-February this year. This means that the index has gone back to levels seen before the resurgence of COVID-19 cases in March that led to the reimposition of tough lockdown protocols. The government has begun easing some of the mobility restrictions in recent weeks.
“Local stocks are poised to move higher in line with our mission of achieving herd immunity soonest,” said Jose Vistan, head of research at AB Capital Securities.
Recent economic numbers and monetary policy decisions were also providing a positive backdrop for share prices, Vistan noted. The latest local jobs and manufacturing data brought the index to the 7,000 level on Friday, he said.
“The market seems to have hit a short-term bottom at around the 6,200 level and (is now) in the midst of a near-term rally,” Vistan said. He sees the PSEi’s next support level at 6,800 and resistance at 7,160.