ILOILO City – The PSEi continued to struggle last week amidst negative external pressure. Concerns over the Hong-Kong protests and the US-China trade war haunted the market as well as concerns of a new global recession.
Consequently, the PSEi dipped to about 7,600 points at one point but quickly recovered back around 7,800 points at the end of last week. Despite the negative news, local stock broker Hernan Segovia also pointed out that it’s not all bad news. Not only has the PSEi continued to hold onto the 7800 support level, the US futures market is also trending upwards.
“Right now, we are gaining a little bit of momentum to sustain the 7,800 point level, granting that the market is still on a sentiment driven kind of mode,” Segovia said, and added that US-China issues will continue to haunt the Philippine stock market this week and quite possibly the week after. “We are at the mercy of external factors,” he explained, but also added that it won’t be forever.
“Eventually, the currency and the trade war will be shrugged off later on, because those catalysts over time, it will just be ignored by the market. Kumbaga gas-gas na,” Segovia said, and added that if there are no new developments in the US-China trade war in the following weeks then investors will start to ignore it, and global markets may slowly start to recover./PN
