Consolidation above 7,000 level seen this week

The benchmark Philippine Stock Exchange index (PSEi) is expected to consolidate within a narrow range above the 7,000 level after a late rally last week.

The PSEi ended the week at 7,289.88 or a week-on-week gain of 2.1 percent.

BDO Unibank Inc. chief strategist Jonathan Ravelas said over the weekend this signaled the benchmark measure would consolidate within the 7,000-7,300 range.

“A sustained break above the 7,300 levels could see a test of the 7,500 levels,” Ravelas said.

The PSEi managed to end the first trading week of 2021 with gains despite losses early in the week.

The selling was spurred by fears of new lockdown measures amid the appearance of a new COVID-19 strain.

Ravelas said the index was eventually rescued from further losses by bargain hunters.

“Further extension of the 2020 budget helped boost the index higher,” he added. INQ