US debt ceiling to weigh on local bourse
The US debt ceiling discussions will continue to be a drag on shares this week as investors are seen to remain on the sidelines until the matter is settled.
Philstocks Financial Inc. senior research analyst Japhet Louis Tantiangco said that the “US debt ceiling issue is still expected to remain at the center stage.”
The debt ceiling refers to the Congress-approved amount of money the US government is allowed to borrow.
“Based on latest developments, according to US Treasury Secretary Janet Yellen, June 5 is now the new date wherein the US government could start to default on its debts if the ceiling is not raised,” Tantiangco explained.
“If the two camps of the US government strike a deal [this] week, then it is expected to spur positive sentiment which in turn may lead to a bounce back for the local bourse,” he added.
He pegged the support level at 6,400 and resistance level at 6,600.
On Friday, the Philippine Stock Exchange index dipped by 0.46 percent, or 30.02 points, to settle at 6,530.20 while the All-Shares slipped by 0.25 percent.
