Recovery bets pushed up the benchmark Philippine Stock Exchange index (PSEi) last week, but rising external risks might limit upside in the near-term.
BDO Unibank Inc. chief strategist Jonathan Ravelas said the PSEi was up 2.04 percent to 7,418.70 on upbeat remittances and improving prospects for the economy.
“Local investors bought property and consumer related stocks on manageable inflation expectation and the outlook that personal spending is seen going back to prepandemic levels amid lower infection cases,” Ravelas said.
“This is supported by the sustained expansion in cash remittances by 5.10 percent last year,” he added.
He warned the PSEi was nearing “strong resistance” at 7,500, which could force the benchmark measure to retrace toward its consolidation level of 7,000 to 7,350.
But if bulls prevail, the PSEi could move up to 7,800 in the near-term, Ravelas said.
Meanwhile, Citicore Energy REIT Corp., the country’s first renewable energy-themed real estate investment trust, is expected to make its trading debut on Feb. 22 after successfully raising P6.4 billion.