PSEi expected to end the year with no fireworks
The benchmark Philippine Stock Exchange Index (PSEi) is expected to trade within a narrow range during the holiday-shortened week in the absence of major news drivers and key economic data.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said in his outlook report the PSEi would end the year between 6,500 and 7,000.
For 2023, the measure could end at around 7,100 to 7,600.
The PSEi, which was weighed down by recession fears and volatile trading by PLDT Inc. in the wake of its P48-billion overspending debacle, rose 0.7 percent the previous week to end at 6,541.03.
Ricafort said strong consumer spending prospects during the Christmas holidays helped lift the stock market.
“The long Christmas holiday weekend may still lead to accelerated holiday-related spending, higher compared to one [or] two years ago as the economy reopened further toward greater normalcy and no more COVID-19 restrictions and no more large lockdowns so far in 2022 and no more lockdowns as a policy priority,” he said.
Support and resistance
Ricafort said resistance levels for the PSEi stood at 6,630 to 6,670 while major support was pegged at 6,120.
In the latest issue of The Market Call, First Metro Investment Corp. and University of Asia and the Pacific said the market’s direction would remain uncertain with inflation likely peaking in December this year.
“Robust domestic demand, especially consumption and infrastructure spending should keep the economy humming while corporate profits continue to improve,” according to The Market Call.
“After hovering around 6,500, it appears that [the PSEi’s] relative strength falls in the middle, suggesting near-term market uncertainty as to its direction,” it added.
