ILOILO City – The Philippine Stock Exchange index (PSEi) closed the week at 7,701.38 points, breaking a significant threshold and bringing much needed optimism to local investors.
Technical analyst Hernan Segovia said that the market was already on track towards the 7,700 level but President Rodrigo Duterte’s State of the Union Address (SONA) also helped to improve the situation.
“Given the SONA was about the president’s course of action towards the Philippine economy, investors took it as a signal to be positively positioning in the market, given that the technical bias of the index is favourable and may go up to the 7,800,” Segovia said.
“So we are right now up again and going up to 7,700 level, and it’s very bullish to say that the market is on track to break 7,800. It’s only a matter of time before the (foreign) investors come rushing back again in a full speed manner,” he added.
Despite these positive developments, there are concerns among investors that the on-going trade war between the United States and China could harm the Philippine peso, and exacerbating inflation problems.
Segovia, however, says that based on existing charts, he believes that the peso-dollar exchange rate will go down to P50 to a dollar. He also believes that the price of oil will help to buoy the Philippine market and protect it against any serious blowback from the ongoing trade war between the US and China./PN
