Global and domestic headwinds continue to weigh on the local stock market, putting investors “on guard” against further downside risks.
The benchmark Philippine Stock Exchange Index (PSEi) was little changed at 6,741.40 amid concerns over “quickening inflation, rising interest rates as well as costlier commodities,” BDO Unibank Inc. chief strategist Jonathan Ravelas said in his weekly outlook report.
He said the PSEi’s recent multiday drop, snapped by Friday’s bounce, indicated “the market remains vulnerable to sell-offs.”
A breakdown below 6,500 level for the PSEi would see traders target 6,300, then down to 6,000 as the next critical support levels, he added.
The PSEi rose 0.82 percent on Friday after three consecutive days of declines.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said investors were also digesting the trickle of announcements coming from the incoming Marcos Jr. administration’s economic team.
“Market sentiment was also partly supported after incoming Department of Finance Secretary [Benjamin] Diokno signaled that the government would target a narrower budget deficit of about 3 percent of [gross domestic product] by 2028 as part of efforts to improve the country’s fiscal performance/debt management, after a new record high outstanding national government debt of P12.763 trillion as of April 2022,” Ricarfort said in his outlook report.
Meanwhile, businessman Peter Nepomuceno’s solar power firm Raslag Corp. will make its PSE trading debut today under the symbol “ASLAG.”
Raslag earlier offered 402.5 million in shares to raise P805 million and partially fund the expansion of its solar power footprint.
Property billionaire Manuel Villar Jr.’s VistaREIT Inc. (VREIT) also completed its P4.8-billion initial public offering last Friday. VREIT, which sold 2.75 billion shares at P1.75 each, would make its PSE debut on June 15.