Bargain-hunting seen lifting PSEi

THE stock market could trade higher this week, with an analyst saying he expects investors to keep hunting for bargains following last week’s hammering.

“Despite the PSEi (Philippine Stock Exchange index) closing at its lowest level in 2018 [last] week, it has managed to stay within its congestion area between 6,800 and 7,100,” Eagle Equities Inc. research head Christopher Mangun said.

“Based on the increase in trading volume and the

pick-up in trading of bluechips, this market is positioning itself to start going up,” he added.

“We may see investors start to move in and pick up blue- chips that are currently undervalued.”

The bellwether PSEi fell to a near two-year low of 6,843.83 last Tuesday but has since returned to the 7,000 level, lifted by bargain-hunting and the latest Bangko Sentral ng Policy rate hike.

“The next major resistance comes in at 7,200 and if it breaks above it, then 7,500 will be the next target which can be where the market will be by the end of the year,” Mangun said.

“With the taming of inflation and the appreciation of the peso, there is no doubt that investors will take notice and slowly start getting back into the market,” he claimed.

In a separate comment, online brokerage firm 2tradeasia.com said that with third- quarter results having been priced in, market players’ focus will likely turn to fourth- quarter prospects.

“There are still challenges that need to be hurdled, however, part of which covers the time frame as to when net foreign selling would cease,” it noted.

On Friday, the PSEi grew by 1.88 percent or 130.75 points to finish at 7,083.34. The broader All Shares rose 1.31 percent or 55.65 points to end at 4,310.52.

ANGELICA BALLESTEROS