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Friday, March 29, 2024

PSE index likely to test 6,600 level this week

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Local stocks are expected to move sideways with an upward momentum in this shortened trading week on expectations of positive first-quarter earnings of listed companies.

“Next week, the local market may test the 6,600 line. The strong conviction seen last Friday gives us hope that the market would be able to hold its ground at the said line. If it is able to do so, 6,600 will be considered as its new support, while its next resistance would be at 6,800,” Philstocks Financial Inc. senior research manager Japeth Louis Tantiangco said.

Tantiangco said investors were anticipating first-quarter corporate earnings to remain strong despite macroeconomic headwinds. Initial corporate earnings results were strong with banks registering high double-digit growth in profits in the first quarter.

Tantiangco said another factor that could boost market sentiments is if April inflation rate continues to slow down from 7.6 percent in March.

“How the market will close the week, however, may depend on our April inflation figures. An inflation reading slower than March’s 7.6 percent, especially one near or at the lower end of the Bangko Sentral ng Pilipinas’ 6.3 percent to 7.1 percent ranged forecast may give the local market a boost,” Tantiangco said.

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