Continued market consolidation seen

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The stock market is seen to continue consolidating this week as fears over rising coronavirus cases here and abroad capped the recent run-up.

COVID-19 has so far infected close to 60,000 people in the Philippines.

The week’s PSEi close at 6,197.38 showed the market was having difficulty sustaining the rally but strong support exists at the 6,000 levels, Ravelas said. “Expect continued consolidation within the 6,000 to 6,500 levels in the near-term. But be on the lookout for a break below 6,000 as it could call for a test of the 5,500 to 5,800 levels,” he said.

PNB Securities president Manuel Lisbona said the broader market was in profit-taking mode last week as investors pocketed gains from the previous week’s rally. “Market sentiment is still widely dictated by events being reported in connection with the pandemic,” Lisbona said.“Interestingly, the funds do not appear to be flowing out of the country given the strength of the peso versus US dollar. This is in contrast to 2018, when net foreign selling hit P106 billion and the peso weakened to 54.70:$1,” he said.Subscribe to Inquirer Business Newsletter

 

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