The stock market may continue its ascent this week as businesses pick up pace with the easing of lockdown protocols but the upside may be curbed by jitters on consumer price pressures, according to market analysts.
Last week, the main-share Philippine Stock Exchange index (PSEi) gained 76.15 points, or 1.06 percent, to close on Friday at 7,289.61. The market is now trading at nine-month highs.
“The market’s optimism may continue to be tempered by the knock-on effects of rising oil prices on the cost of electricity and food prices,” said Manuel Lisbona, president of PNB Securities.
Lisbona said the PSEi was now approaching the year’s high of 7,432, which would be the immediate resistance level. The immediate support is seen at 7,200.“The market’s long-term trend is still bullish. Watch [out] for good names that are being sold down without good reason,” he said.
BDO Unibank chief strategist Jonathan Ravelas also said the market remained optimistic on prospects of further economic reopening.
Last week’s close indicated the market may still have some gas to retry the 7,300 to 7,400 levels in the near-term, Ravelas said.
“But should the profit-taking activities continue and break below the 7,090 levels, a near-term top may have been achieved,” he said. INQ