THE Philippine Stock Exchange index (PSEi) could test near-term resistance levels following its continued climb on Monday on the back of improved sentiment and renewed foreign buying, an analyst said.
The benchmark index rose 1.13 percent to end the day at 6,419.96, extending its advance as investors positioned for a possible recovery in domestic economic growth.
Trading remained active, with net value turnover reaching P6.53 billion, above the year-to-date average, while foreign investors recorded net inflows of P534.17 million.
Japhet Tantiangco, research head at Philstocks Financial Inc., said that continued buying interest, particularly from foreign investors, could help sustain the market’s short-term momentum, although he noted that the index was nearing key resistance levels.
“All sectors ended in positive territory, led by mining and oil stocks, which reflected a risk-on appetite among investors,” Tantiangco said.
He said the PSEi was facing immediate resistance at the 6,450 to 6,500 level, with support around 6,300.
A sustained move above resistance could pave the way for further gains in the near term, though profit-taking may emerge as the index approaches these levels.
Market breadth was positive, with advancers outpacing decliners, 142 to 80.
SM Prime Holdings Inc. climbed 3.24 percent to P23.90 to lead index gainers, while DigiPlus Interactive Corp. fell 4.29 percent to P15.60, making it the worst–performing index stock.
For the sessions ahead, Tantiangco said investors could continue to focus on fundamentally sound and actively traded stocks while remaining cautious as the index trades near resistance.