Stock market bulls will be put to the test after the benchmark Philippine Stock Exchange index (PSEi) closed at its lowest level this year while investors remain worried about the health of the global economy.
During the previous week, the PSEi fell 1.81 percent to 6,290.27 as of Friday’s close. The stock market will also be closed for the Ninoy Aquino Day holiday on Aug. 21.
“Investors face a potentially challenging trading week after the index broke below its five-month consolidation range and printed its lowest close since November 2022,” Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said in a note to investors.
“Sentiment has turned markedly negative in view of rising US bond yields and growing worries about China’s economic slowdown,” he added.
Colet said investors will also be monitoring news from the Federal Reserve’s annual economic policy symposium at Jackson Hole, Wyoming, later this week. He pegged the next support areas at 6,150 to 6,200 while resistance was from 6,370 to 6,400.