PSEI rebound hangs on US gains

Philippine Stock Exchange, Bonifacio Global City. INQUIRER PHOTO/LYN RILLON

Gains from the US market may drive optimism this week after inflation worries dampened investor sentiment.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said the record-high performance of the Nasdaq composite could “provide support to the local market.”

The higher net income reported by local companies during the first quarter of the year may also help lift the market, according to Ricafort.

The benchmark Philippine Stock Exchange Index (PSEi) ended at 6,619.89 on Friday, a slight 0.02 percent growth from 6,618.69 the previous week.

The market registered losses mostly due to inflation worries abroad, as well as the Philippine peso touching the P58-per-dollar mark after nearly two years.

Minutes of the US Federal Reserve’s meeting also showed that policymakers were concerned over the slower-than-expected progress in curbing inflation, resulting in negative sentiments.

Ricafort said one-month support would be at the 6,540 level, which may boost “the underlying healthy upward correction” since April 16, when the PSEi reached 6,404.97 due to escalating conflicts in the Middle East.

He pegged the resistance level at 6,660 to 6,740.