Ghost month to clip stock market’s high spirits? | Inquirer Business

Ghost month to clip stock market’s high spirits?

/ 05:12 AM August 09, 2021

After a week of upbeat trading inspired by a favorable stream of corporate earnings reports, local stocks are seen to consolidate this week as investors tread with more caution through the so-called ghost month.

The main-share Philippine Stock Exchange index (PSEi) racked up 269.68 points or 4.3 percent last week, closing Friday at 6,539.91 and advancing for the first time in five weeks.


BDO Unibank chief strategist Jonathan Ravelas said good corporate earnings results, particularly among banks and property firms, shored up investor sentiment.

“The week’s close at 6,539.91 signals further consolidation within the 6,300 to 6,700 levels in the near-term,” Ravelas said.


“The market is facing headwinds that will keep the market flat at best,” said Manuel Lisbona, president of PNB Securities. “The latest lockdown due to a resurgence of COVID cases will again put a damper on the economy especially if the lockdown is extended.” Lisbona noted the market was likewise heading into a seasonally weak period due to the “ghost” month, which coincides with the peak of summer holidays in other parts of the world. This is the period in the Lunar calendar when Asian investors tend to avoid making big investments. This year, the “ghost” month started on Aug. 8 and will last until Sept. 6.

Lisbona said, however, this could be a good time for both long-term investors and swing traders to take position for the seasonally strong period of December to January.

For now, Lisbona sees the PSEi’s next market resistance at 6,700 and support at 6,200.

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Local Stock, Philippine Stock Exchange index (PSEi)
For feedback, complaints, or inquiries, contact us.

Curated business news

By providing an email address. I agree to the Terms of Use and
acknowledge that I have read the Privacy Policy.

© Copyright 1997-2022 | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.