Market Outlook

The index closed last week showing extreme bearishness, having dipped below all significant moving averages but is now consolidating around the 200-day MA, suggesting

Yesterday, the local stock market staged a notable recovery, surpassing the 6500 level for the second consecutive day.

Local equities may continue to reinforce its strength, given the latest trend.

Market participants will monitor continuity of the local bourse’s recent recovery, possibly back to 6,500.

The index’s standing decreased by -10.57% in less than 2 weeks, indicating rapid and substantial losses trading now within the 6404.97 to 7082.02 range.

Market participants will monitor continuity of Friday’s supply pressure, especially with softer gauges from Wall Street & crude’s ascent as a result of geopolitical headlines.

If the bulls dominate, the PSEi could once again retest next resistance levels around 6,700 and 6,800.

The index finds itself deep into a downward trend as the index falls for its sixth straight day.

Recovery angles are seen, as the PSEi reverts back to 6,800-6,850 zone.

Comparative inflation is slowing, as 1Q24 average was at 3.3%, compared to 1Q23’s 8.3% and 4Q23’s 4.3%.

The local bourse saw three black crows in yesterday’s trading session as the index slumped by -0.54% or -36.76pts to 6,827.06.

Mixed trades might characterize Thursday’s trades, as investors heed for the latest inflation gauge data due Friday.

Barely a few points shy of the 7,000 zone, market participants are seen to monitor crosses above this mark while heeding for other momentum support.

The PSEi logged its third consecutive day of decline yesterday, causing the RSI to sink deeper into the bearish region.

Activity may stay range-bound in the absence of new leads, as most investors prepare for the Lenten pause.