Thailand
Philippines: Easing of restrictions to lift prices
MANILA, Philippines — The main index failed to sustain its climb after leaping past the 7,000 mark to an eight-month high on Wednesday, but traders believe the market could gain momentum from the easing of restrictions and fewer cases of COVID-19 over the past week.
The benchmark Philippine Stock Exchange index (PSEi) ended lower for the second consecutive week at 6,906.86 on Friday, still within striking distance of the immediate 7,000 resistance, which it breached when it closed at 7,057.45 on Oct.6.
“(This week) investors are expected to watch out for the government’s decision on the social restriction measures of the country after Oct. 15. Easing of the restrictions, primarily in the National Capital Region, may send the local market higher. Till the government’s decision, the market may take cues from our daily COVID-19 cases,” Philstocks Financial analyst Jahpet Tantiangco said.
He said investors would also be keeping a close watch on developments in and outside the country, including progress on COVID-19 cases both here and abroad, and the arrival of more vaccines.
Mobility restrictions – whether or not they will be eased further – would also affect investors’ decision to go back, leave or stay in the market, Tantiangco said.
Local authorities have been reporting a lower number of new COVID cases. Last week’s new counts averaged 10,606 per day, lower than the preceding week’s average of 15,785.
Tantiangco said if this continues, it may spur optimism in the market because it strengthens the possibility that restrictions would be eased.
On the downside, however, Tantiangco said global oil prices remain elevated – a cause of worry for inflation trackers.
“If the high oil prices are sustained, worse, if they rally further, then it could raise inflation worries, which in turn, could weigh on the local bourse. Aside from these, investors may also watch out for our upcoming July foreign direct investment numbers, and August foreign trade and OFW remittance data for clues on how the economy has been faring,” he added.
Thus, he said the PSEi may try to regain its position above its 10-day exponential moving average or at 6,949.40 as of Oct. 8.
“If it is able to do so, it may test its 7,000 to 7,100 resistance range. If it fails to do so, however, it could move within its 10-day exponential moving average and 50-day exponential moving average or at 6,842.55,” he said.
Source: https://www.philstar.com/business/2021/10/11/2133181/easing-restrictions-lift-prices