Bull vs bunny: Choppy year set to spoil PSEI’s momentous rally?
The stock market is poised to push higher this week after entering a bull market.
The benchmark Philippine Stock Exchange index (PSEi) ended Friday’s session at 6,951.54, up 4.25 percent for the week and soaring nearly 22 percent since the recent low on Oct. 3, 2022.
Jonathan Ravelas, a veteran stock market analyst and financial strategy consultant at e-Methods for Business Management Corp., advised caution even as the PSEi was expected to retest the 7,000 level.
He said risks from inflation and the looming global recession could weigh on consumer spending and eventually, market sentiments.
“I’d rather take the cautious stance and this could be an opportunity to sell on rallies,” Ravelas told the Inquirer.
He also sees volatility continuing this year due to external threats to the economy.
Article continues after this advertisement“Consumption will be challenged by inflation,” he said.
Article continues after this advertisement“This is going to be the Year of the Rabbit. The rabbit goes up and goes down. The market can go up first then go down so it could be more of a choppy year,” he added.
Michael Ricafort, chief economist at the Rizal Commercial Banking Corp., said the recent stock market surge was further bolstered by improving inflation data in the United States and expectations the economy would benefit from the reopening of China.
“Any sustained breach above the 11-month major resistance of 6,840 levels in the coming days/weeks could potentially target/retest 7,000-7,100 levels and the 7,552.20 pandemic high posted on February 9, 2022,” Ricafort said.
He pegged the immediate PSEi support levels at 6,820 to 6,730 while major support could be found at 6,660 to 6,590.
