Still in trading deadlock, PSEi awaits fresh stimulus

The Philippine Stock Exchange Index (PSEi) may move in a narrow range as investors await fresh catalysts, which include the upcoming disclosure of the 2023 economic growth data.

The past week, the PSEi slumped 2.1 percent to 6,503.54 after Fed officials offered a more hawkish view alongside rising geopolitical tensions in the West Philippine Sea.

Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said the PSEi could consolidate within the 6,450 to 6,650 range after failing to break out above 6,700.

Michael Ricafort, chief economist at the Rizal Commercial Banking Corp., said supply-chain disruptions amid increased tensions in the Red Sea contributed to risk averse sentiments.

He noted this “could lead to higher shipping costs and some shipping delays in the Asia-Europe shipping route due to longer route around Africa, instead of the shortcut through Suez Canal via the Red Sea.”

Investors would be monitoring a steady stream of data releases, including imports to be followed by gross domestic product results on Jan. 26.

He said immediate support levels for the PSEi were at 6,510 to 6,400 while the 6,600 to 6,700 zone would act as resistance.

Ricafort said it was important for the PSEi to sustain gains above 6,700 before a potential retest toward 7,000. —Miguel R. Camus INQ