No way out of bear market yet for PH stocks?
The Philippine Stock Exchange index (PSEi) could remain stuck in bear market territory this week as investors stay on the sidelines to wait out the Federal Reserve’s aggressive rate hikes and the rising inflation.
Philstocks Financial, Inc. senior research analyst Japhet Louis Tantiangco said there might be bargain hunting this week but the stock market would not see a “strong rally yet as the market continues to contend with economic concerns.”
“This includes [the increasing] national debt, rising yields both at home and in the [United States], the peso’s weakness and recession worries abroad,” he added.
Here at home, the Bangko Sentral ng Pilipinas said inflation could have hit 7.4 percent in September over expensive electricity rates and key food items. If realized, it would be the highest in four years.
“Given the aforementioned economic concerns, we may not yet see the local market get out of the bear territory,” Tantiangco added. A bear market means the PSEi has declined by 20 percent from the recent high.
Last Friday, the PSEi tumbled 3.26 percent, or 193.18 points, to settle at 5,741.97.
It was the fourth consecutive trading day that the PSEi stayed in bear market territory.
The PSEi is now down 23.98 percent from its recent peak. Year-to-date, it has declined by 19.39 percent.
It ended the third quarter 6.7-percent weaker from the previous quarter when it closed at 6,155.
Tantiangco pegged the support level at 5,700. Support level is where demand usually comes in to protect the index from further falling.
—Tyrone C. Piad INQ
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