Stock market seen testing 8,000 level

The local stock barometer is seen making a fresh attempt to conquer the 8,000 mark this week while investors track the progress of US-China trade talks and the Philippines’ March inflation data.

Last week, the main-share Philippine Stock Exchange index (PSEi) shed 92.49 points or 1.15 percent to close on Friday at 7,920.93.

BDO Unibank chief strategist Jonathan Ravelas said 8,000 remained a strong resistance level.

“The week’s close at 7,920.93 highlights further consolidation within the 7,700 to 8,000 levels,” he said.

“The main index is in an incredibly good position despite the tumble that we saw last week,” Eagle Equities head of research Christopher Mangun said. “Investors were worried the drop from 8,000 spelled doom but it could be seen as a slight pullback after being up more than 2 percent in the week before.”

Mangun said the PSEi could find support at the 7,900 level. He noted indication that it would aim to hurdle 8,000 again this week.

“Once it breaks above 8,000, the next target will be 8,140 and if that is breached, we may see it rally to 9,000,” Mangun said. “Investor sentiment will improve dramatically once it breaks above these key levels.”

The government is also set to release the March inflation data this week.  The figures will likely be at the lower end of the government’s target range. “This will be very positive and may prompt investors to come into the market with conviction which in turn will help fuel the PSEi’s rally,” Mangun said.

He said it was a good sign the main index was able to end the week above the 7,900 support level, despite the big drop earlier in the week. Trading volumes were extremely thin, with turnover value of P28.14 billion, the lowest weekly value turnover since the start of 2019. —DORIS DUMLAO-ABADILLA