PSEi wants to move forward as it seeks to close chapter of dull trading

Despite lingering worries about the next moves of the Bangko Sentral ng Pilipinas (BSP), traders and investors will be looking toward the release of November inflation data this week to help perk up the market.

For now, experts see sideways trading for the Philippine Stock Exchange index (PSEi), which closed last week relatively flat at 6,245.18—a weekly decline of 0.39 percent.

“The market may see continued consolidation in the 6,200 to 6,300 area and could potentially make an attempt for 6,380 in case of positive news flows,” said Juan Paolo Colet, managing director at investment bank China Bank Capital Corp.

Meanwhile, Colet said December was shaping up to a be positive period for the market, although the usual caveats still applied.

“That narrative will be tested this week as the market turns its focus to the Philippine November inflation print and [the] October jobs data [in the United States],” Colet said.

“A sustained slowdown in local inflation could persuade the BSP to keep its policy rate steady when the Monetary Board meets next week. Meantime, signs of a cooling US jobs market would strengthen the view that the Federal Reserve is done with its rate hike campaign. Both outcomes should be positive for equities,” he added.

Michael Ricafort, chief economist at the Rizal Commercial Banking Corp., pegged major support levels for the PSEi at 6,120 to 6,080 while 6,300 remains a major resistance zone, or the upper boundary of a trade that bulls may seek to dismantle. INQ