Covid figures to influence PSEi

THE Philippine stock index is expected to continue taking cues from the local Covid-19 pandemic situation, along with the upcoming releases of some economic data and developments abroad this trading week.

Philstocks Financial Inc. senior research analyst Japhet Tantiangco sees the main index holding its position above the 7,300 level — considered a resistance—on the back of improving economic prospects as restrictions were eased in several areas in the country, including Metro Manila.

The government placed the National Capital Region and a few other provinces under Alert Level 2 from the previous Alert Level 3 until February 15.

Tantiangco said the country’s daily cases have averaged 10,987 last week, a drop from the preceding week’s 20,349 daily average.

“Sustaining the downtrend in our Covid-19 cases may also help the market trade higher next week since it could lead to the further easing of restrictions in the country,” Tantiangco noted.

He added that investors would also monitor the release of the labor force survey and foreign direct investments data for cues on the local economy.

Meanwhile, inflation concerns abroad could post as a challenge for the market, according to Tantiangco.

“Inflation concerns may challenge the market, however, as global oil prices continue to rally with the benchmark Brent Crude already surpassing $90 per barrel,” he explained.

Tantiangco sees the local bourse trading from 7,300 to 7,500 this week.

For his part, Regina Capital Development Corp. Managing Director Luis Limlingan said investors would be focusing on the results of the Philippine Stock Exchange index (PSEi) rebalancing, along with the upcoming MSCI rebalancing and any corporate earnings that might be released.

Last week, the benchmark PSEi gained 1 percent or 73.58 points to close at 7,456.35 on Friday as the country’s inflation rate eased in January. FAYE ALMAZAN