Stocks to test 7,000 resistance

February 26, 2024 | 12:00am

MANILA, Philippines — The stock market looks to sustain its momentum and advance to the 7,000 level this week, with investors keeping an eye on more corporate earnings results and positive cues abroad to fend off selling pressures.

The benchmark Philippine Stock Exchange index (PSEi) finished strong last week at 6,913.21, even hitting an intraday high for the year at 6,990.65

According to 2TradeAsia.com, positive earnings helped the PSEi inched closer to 7,000 last week despite rising global recession fears.

“Fourth quarter 2023 earnings have been mostly impressive so far – for instance, banks and property hit our positive expectations on the head, and expansion guidance have been consistently more aggressive relative to last year,” 2TradeAsia.com said.

“The PSEi has so far held on to the 6,900 level, and is even showing signs of potentially being able to out-stamina the selling pressure around the 7,000 mark,” it said.

2TradeAsia.com noted that this week will be heavy on large caps’ earnings, led by the SM Group and Meralco.

“Brace for likely intra-week swings as these make up 45 percent weight on the index,” it said.

Japhet Tantiangco of PhilStocks Financial, on his end, said the local market could move sideways this week.

He said the market may see strong selling pressures as investors take profits from the market’s preceding five-week rally.

“The local market is already running on a five-week winning streak with a total gain of 6.30 percent. Chartwise, the market has been closing in on its resistance at 7,000. However, trading remains anemic as seen in the low value turnover, implying that many are still on the sidelines,” Tantiangco said.

“On a positive note, optimism toward our corporate sector’s fourth quarter/full year 2023 results may continue to provide support to the bourse. Record high performances from Wall Street, if continued, may also produce positive spillovers that would help the local market,” he said.

Tantiangco said investors may also watch out for the upcoming S&P Global Philippines manufacturing index for clues on how the local economy has been faring.

Immediate support is seen at 6,700 to 6,800, while resistance is at 7,000.