Slippery 7,000: PSEi guns for elusive mark anew

The stock barometer is seen heading for an uphill battle to conquer the 7,000 mark this week as investors await fresh incentives.

The main-share Philippine Stock Exchange index (PSEi) rose by 0.56 percent week-on-week, closing Friday at 6,951.53.

“The market has been quite resilient in the past week, bouncing off a low of 6,779 and trying to test the 7,000 psychological resistance level in the past couple of sessions,” said Manuel Lisbona, president of PNB Securities.

“In terms of price action, the bears have been in control since midweek, as they have been successful in pushing back the market’s advances despite positive news that the BSP (Bangko Sentral ng Pilipinas) … will keep policy rates at current record low levels,” Lisbona said.

But Lisbona said the effects of the BSP’s monetary stance were muted as banks remained selective in lending. As job uncertainties lingered, sluggish appetite for loans remained, he said.

“The market looks like it will continue to tread water between 6,800 and 7,000, as investors look for more leads,” he said.

Lisbona also noted the market was unfazed by the US Federal Reserve’s taper talk.

“It seems like investors think the Fed is bluffing—and they could possibly be right. The US is in no position to stop what they are doing and especially with regard to raising rates. With their debt load, even a 25-basis point rise in rates will be expensive,” he said.

Joseph Roxas, president of Eagle Equities, said the market could draw some strength this week from several factors.

“I think that after the listing of MREIT, as long as it’s share price doesn’t go down, those who have a short-term view could sell and move to other issues, allowing the market to go up,” Roxas said.

He added the payment for the tender offer of First Gen shares would release a lot of money to the market.

Window-dressing is also expected. INQ