The benchmark of the Philippine Stock Exchange (PSEi) would continue to consolidate between 7,200 and 7,400 in the near term, said Jonathan Ravelas, chief equity strategist at BDO Unibank Inc.
The i-PSE fell 1.39% week-over-week as investors continued to absorb the results of the end of the third quarter earnings reports, as renewed inflation risks weighed on the recovery outlook economic in the world.
The Bangko Sentral ng Pilipinas kept its key rate unchanged at a record low of 2%, Governor Benjamin Diokno said inflation remained manageable.
Ravelas said the previous week’s close was a warning that the market was struggling to hold gains above 7,350 to 7,425.
He added that a break below 7,200 would signal that a “short-term top” at 7,474.75 was in place with the downside risk expected to extend to 7,000.
Meanwhile, strong consumer spending during the fourth quarter earnings season could act as a catalyst for the market to rise.
“The fourth quarter should be good for profits. Hopefully we catch up with some of the real estate sector earnings, most of which have been lagging in the last three quarters, ”said Mark Angeles, head of equity research at First Metro Securities Brokerage Corp ., during a business forum organized by the Inquirer. .
“So we are more focused on reopening [of the economy], people come out to spend, ”he said. INQ
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