The Philippine Stock Exchange (PSEi) is expected to move sideways in this trading week after closing in the green on Friday or rising 12.26 points to close at 6,606.00.
Japhet Tantiangkou, Senior Research Analyst at Philstocks Financial Inc. The index will undergo further tests of the 6600 level as investors are expected to take cues from the movement of the Philippine peso against the US dollar (USD), as well as from others. Important economic data coming next week.
Tantiangco explained that, “In Friday’s trading, the peso managed to get back above the 57.00 level to close at 56.82 against the US dollar. The continuation of the recovery momentum is seen as boosting the sentiment in the stock market.” “Apart from this, investors are also expected to monitor incoming remittances of overseas Filipino workers, foreign direct investment and balance of payments data for evidence of the economy.”
Moreover, persistent concerns about recession risks in the US and Europe may continue to weigh on the market.
Tantiangco anticipates the support level at 6600, while the immediate dynamic resistance appears at the 200-day exponential moving average. He added that if it falls below 6600, it may test its next support at the 50-day exponential moving average.
Meanwhile, Michael Rycafort, chief economist at Rizal Commercial Banking Corp., said PSEi rose for the second day in a row on Friday, which is in line with a nice downward correction in the US dollar against major global currencies.
“In addition, this was also in line with some of the actions taken by some Asian central banks to stabilize their local currencies after the recent increase in the US dollar amid hawkish signals from the Federal Reserve (Fed) and the European Central Bank (ECB),” Rycafort added. . “Furthermore, Chairman of the Federal Reserve [Jerome] Powell indicated that the Fed raised the interest rate again by about 75 basis points on September 21, 2022, while the European Central Bank also raised the key refinancing rate, by 0.75 to 1.25 percent, while he indicated another increase in the interest rate by 0.75 in October 2022″.
Rycafort sees immediate resistance at 6,760 levels, with the next important resistance at 6,980 to 7,000. On the other hand, it sees immediate support at 6,500-6,600, with immediate major support at 6,370-6,400 levels.
Finally, 2TradeAsia said in its report that the local market may remain range-bound, or with investors to buy at a support trendline and sell at a resistance trendline level for a particular stock or option, meanwhile as drivers of value, both onshore and offshore, may shift dramatically during The remainder of the third quarter. In addition, the outlook for the fourth quarter will be related to many global factors that appear bleak at first glance. These are the September FOMC meetings, recession fears and energy markets.
2TradeAsia sees immediate support at 6500 while resistance at 6900.