The bellwether Philippine Stock Exchange index (PSEi) is expected to resume attempts to breach the 7,000-point level this week as investors await less restrictive quarantine restrictions amid the recent decline in COVID-19 cases.
Analysts said a shift to a looser alert level 3 next month for National Capital Region could provide a big boost to the market with improving COVID-19 indicators.
The seasonal quarter-end window dressing is also seen to boost market trading this week. However, analysts said investors need more catalysts to support the market’s upward momentum.
“The 7,000 levels remains elusive and reflects a wall of worry (the pandemic, inflation woes, US taper are all just around the corner),” BDO Unibank Inc. chief investment strategist Jonathan Ravelas said.
“The week’s close at 6,951.53 highlights continued consolidation within the 6,700-7,000 levels. Be on the lookout, should the 6,700 levels give way, the next key support is at 6,500 levels,” he added.
The PSEi last week rose 0.6 percent to 6,951.53.
