Market steps closer to 7,000 level

March 5, 2024 | 12:00am

MANILA, Philippines — Investors yesterday pushed the benchmark index to within the 7,000 territory, as they opened the week making bets on local stocks ahead of the reporting February inflation.

The bellwether Philippine Stock Exchange index (PSEi) gained 32.08 points, or 0.46 percent, to close at 6,951.67, while the broader All Shares index added 9.74 points, or 0.27 percent, to land at 3,618.95.

Luis Limlingan, head of sales at Regina Capital Development Corp., said the PSEi was lifted by the general sentiment that February inflation will land within the government’s forecast.

For February, the Bangko Sentral ng Pilipinas (BSP) expects inflation to range between 2.8 percent and 3.6 percent.

The BSP wants to contain the general increase in the prices of goods and services within the target band of two to four percent this year.

Inflation quickened to six percent in 2023, exceeding the central bank’s target range for the second straight year, from 5.8 percent in 2022.

The BSP has emerged as the most aggressive central bank in the region as it raised interest rates by 450 basis points since May 2022 to tame inflation and stabilize the peso.

Philstocks Financial Inc. assistant research manager Claire Alviar said investors would wait out the release of February inflation before they decide on whether to push the PSEi back to 7,000 level.

The Philippine Statistics Authority will report the inflation data today.

“Chart-wise, the 7,000 level was a strong psychological resistance level of the market, (and) the long upper wick of the market’s recent candles suggests strong selling pressure,” Alviar said.