PSEi to track vaccination progress

THE Philippine index is seen trading sideways as investors will continue to track the country’s vaccination program, the local pandemic situation, and inflation concerns abroad, analysts said.

Last week, the benchmark Philippine Stock Exchange index (PSEi) improved by 0.53 percent or 32.96 points to close at its intraday high of 6,269.36 despite trading mostly in the red on Friday.

Philstocks Financial Inc. senior research analyst Japhet Tantiangco expects a sideways movement from the local bourse this week.

Tantiangco said the progress in the local vaccine procurement helps in improving the mediumto long-term economic prospects of the country. However, woes on the second quarter economic and corporate results could continue worrying investors as these are seen to “bear the brunt” of the previously reimposed strict quarantine measures in the capital region and neighboring provinces.

The inflation and interest rate concerns in the US could also weigh on the local market, Tantiangco added.

Tantiangco has set support at 6,100, while resistance remains at the market’s current 10-day exponential moving average of 6,312.72.

For his part, Diversified Securities Inc. trader Aniceto Pangan sees the market’s volatility persisting despite the recently eased quarantine restrictions in the NCR Plus.

“Market will continue its volatility despite ease in restrictions after the more than expected US inflation rates released last week,” Pangan said.

The government placed Metro Manila and the provinces of Bulacan, Cavite, Laguna and Rizal under the general community quarantine with heightened restrictions for the rest of May.

Pangan added that the still limited public mobility, along with lingering concerns on the country’s pandemic situation, would “continue to create a lackluster sentiment among investors.”

Pangan has set the market’s psychological support at 6,000, while major resistance is at 6,500.