By Revin Mikhael D. Ochave, Reporter
STOCKS are expected to climb during the first trading week of 2021 as investor sentiment is seen to improve on the developments on coronavirus disease 2019 (COVID-19) vaccines over the holiday break.
The bellwether Philippine Stock Exchange index (PSEi) ended at 7,139.71 on Tuesday, the last trading day of 2020, higher by 17.46 points or 0.24% from the previous trading session.
On a week on week basis, the main index fell 0.9% or 64.67 points, continuing its decline.
Average value turnover fell 13.2% week on week to P9.63 billion, while average net foreign selling eased 99.3% to P10.78 million.
Timson Securities, Inc. Head of Online Trading Darren Blaine T. Pangan said the local bourse may start the first week of trading this year on a good note as investors are projected to welcome recent positive COVID-19 vaccine news.
“To start the New Year, the market may inch up this week as investors reposition on certain issues as they come back from the long weekend,” Mr. Pangan said in a mobile phone message.
Meanwhile, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said the market’s performance will be dictated by news on the new COVID-19 strain.
The Philippines has prohibited the entry of foreign travellers from the United States (US) starting Jan. 3 after the new COVID-19 strain has been detected in the state of Florida.
The travel ban will last until Jan. 15 and covers passengers who have been to the US within 14 days before their arrival to the Philippines.
“Passengers from the US who will arrive before Jan. 3 will be allowed to enter the Philippines, but they must undergo a 14-day quarantine even if they had initially tested negative,” Reuters said.
The US joins the 19 other countries such as Denmark, Ireland, Japan, Australia, France, Germany, and Italy, among others, that were covered by the initial ban implemented by the Philippines on Dec. 29.
Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a mobile phone message that the local bourse may move sideways for the coming week as investors weigh their prospects for 2021.
“However, pandemic worries amplified by the new COVID-19 variant and its spread to other countries may continue to weigh on investor sentiment,” Mr. Tantiagco said.
Timson’s Mr. Pangan said the market’s area of support is seen at 7,000, while 7,300 seems to be the nearest resistance level.
For Mr. Tantiangco, the PSEi is projected to test its 7,150 to 7,200 resistance range.
“The market’s initial support is seen at its 50-day exponential moving average currently at 6,856.79. After this, its next support is seen at the 6,600 level,” Mr. Tantiangco said. — with Reuters