Bourse may pierce 7K this week

September 28, 2021

Market traded flat yesterday as funds transferred to different sectors in anticipation of the latest window dressing for the quarter’s end.

Also Wall Street investors’ attention will be directed to the progress in the new budget proposed by US Congress, as well as data on initial jobless claims on 30 September, final IHS manufacturing purchasers manufacturing index (PMI) and August core inflation, both up for release on 1 October.

Back home, the Bangko Sentral ng Pilipinas (BSP) kept its overnight reverse repurchase, deposit and lending rates at 2 percent, 1.5 percent and 2.5 percent, respectively.

For this week, August producer price index and September PMI are scheduled to be released in the latter part of the week, Regina Capital Development Corp. said.

The Philippine Stock Exchange index increased 4.73 points, or 0.07 percent, to 6,956.26 after trades of 107,890 shares valued at P7.086 billion.

Intents made plain
With the US Federal Reserves and the BSP being able to communicate well their policy stance last week, investors have less uncertainty to price in and along with indications that local Covid-19 restrictions may further be eased, challenging the 7,000 level this week is a strong possibility again.

COL Chief Technical Analyst Juanis Barredo noted that the index needs to break the formidable 7,000 barrier.

Some blue chip issues are now back to overbought levels. Support for the index stands at its recent low of 6,779 then is followed by 6,692 while the next resistance level will be 7,064 and eventually 7,400.