PHILIPPINE SHARES may remain weak this week as the market situation remains cautious, as US President-elect Donald J. Trump will take office on Monday and in the absence of new catalysts.
On Friday, the Philippine Stock Exchange index (PSEi) rose 1.38% or 86.60 points to 6,352.12, while the broad index of all shares rose 0.76% or 27.95 points to 3,703.73.
However, week-to-week, the PSEi fell by 2.22% or 144.20 points from its close of 6,496.32 on Jan. 10, marking its second straight weekly decline.
“The local shares followed the peers of the region, they succumbed to profit taking before the inauguration of Mr. Volatile global financial markets were gripped by political and economic concerns,” said online brokerage firm 2TradeAsia.com in a market note. “Aside from uncertainty over trade, immigration and tariffs, the health of the US economy has been sending pain signals around the world.”
“The local market has changed a lot as it increases its decline. At the same time, the market broke below the 6,400 level, which previously served as a support line,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.
The week saw the benchmark index fall to the 6,200 level twice as the release of key US inflation reports prompted markets to readjust their Federal Reserve’s easing expectations.
On Thursday, the PSEi fell to 6,265.52, which was the lowest level in almost seven months or since it ended at 6,158.48 on June 21, 2024.
This week, the inauguration of Mr. Trump will likely be a key source of market lead, said Rizal Commercial Banking Corp. chief economist. Michael L. Ricafort in a Viber message.
“We are still waiting for the state of caution to remain in local football due to the lack of new leads. Investors are expected to wait for new catalysts. Until then, it is expected that there will be indications in other financial markets,” said Mr. Tantiangco.
“We may also see episodes of selling hunting given that the local market is still at an attractive level, basically,” he added, placing the PSEi’s support at 6,150 and resistance at 6,400.
On the other hand, 2TradeAsia.com has placed market support at 6,000 and resistance at 6,500.
Mr. Trump arrived in the Washington area on Saturday evening to celebrate his return to power, Reuters reported.
At the Capitol Rotunda, Mr. Trump will be sworn in at 12:00 ET (1700 GMT) and deliver the inaugural address, a speech that often sets the tone for a president’s four-year term. He told NBC News that the theme would be “unity and strength, and the word ‘justice.’
When he returned to the White House on Monday afternoon, Mr. – Revin Mikhael D. Ochave with Reuters
Source link
