Stocks gauge slips anew; peso stays firm

MANILA – The Philippine Stock Exchange index (PSEi) ended Monday down still due to correction but the peso sustained its sideways close against the greenback. 


The main equities index slipped for the second consecutive trading day after it ended at 6,518.64 points. 


All Shares declined by 0.26 percent, or 10.39 points, to 3,988.25 points. 


Only the Financials gained during the day after it rose by 0.26 percent. 


On the other hand, the Mining and Oil index dropped by 1.32 percent; Industrial, 0.63 percent; Services and Property, both fell by 0.47 percent; and Holding Firms, 0.41 percent. 


Volume totaled 2.43 billion shares amounting to PHP5.97 billion.


Decliners led advancers at 120 to 86, while 48 shares were unchanged.


Ricafort said while the latest quarantine classification in the NCR bubble has been eased, it “could still nevertheless reduce economic/business activities.”


He also cited as a negative factor the delay in the arrival of additional Covid-19 vaccines, which “could have helped in reducing new Covid-19 cases and in the overall economic recovery prospects.” 


Ricafort said even with the latest drop in the PSEi, its “immediate major support over the past six months remain strong at 6,400 levels.”


This level, he added, is “defying the ECQ extension in NCR Plus and helping prevent further downward correction towards the 6,000-6,200 levels, which have been strong support levels since 4Q (fourth quarter) 2020.”


He forecasts the main gauge’s immediate resistance level to be around 6,600-6,700 levels “which serve as the next gateways vs. further gains in the near term.”


Other factors that buoyed the peso include the drop in global oil prices to among its 1.5-month lows and the decline to among two-week lows of the benchmark 10-year US treasury yields, he added. 


Ricafort said the peso’s next support level is between 48.30-48.80 while immediate resistance level is between 48.70 and 48.80. (PNA)


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