Connect with us

Hi, what are you looking for?

Economy

Shares to move sideways on US-China tensions

PHILIPPINE SHARES are expected to go sideways after a one-day trading break as investors will assess the impact of renewed tensions between the United States and China on the market.

On Monday, the 30-member Philippine Stock Exchange index (PSEi) improved 69.11 points or 0.96% to close at 7,203.67, while the broader all shares index climbed 35.68 points or 0.83% to 4,286.05.

The market was closed on Tuesday in observance of the Feast of the Immaculate Conception of Mary.

Timson Securities, Inc. Head of Online Trading and Trader Darren Blaine T. Pangan said in a mobile phone message that the benchmark index may be affected as investors weigh the ongoing tensions between the US and China.

“As investors may be assessing how the US-China tensions may play out over the short-term, the index may trade sideways, especially that the market is currently trading near its immediate resistance at the 7,200 level,” Mr. Pangan said.

The United States on Monday imposed financial sanctions and a travel ban on 14 Chinese officials over their alleged role in Beijing’s disqualification last month of elected opposition legislators in Hong Kong, Reuters reported.

The sanctions prohibit the 14 individuals and their immediate members from traveling to the United States. Any assets the officials might have within the United States will be blocked and US individuals and companies will be banned from dealing with them.

Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said the market might also move sideways following the release of faster-than-expected inflation data.

“The overbought condition of the market with the recent uptick in inflation rate at higher than estimate may dampen the sentiment,” Mr. Pangan said in a mobile phone message.

The overall year-on-year increase in prices of widely used goods accelerated to its fastest pace in 21 months in November, the Philippine Statistics Authority (PSA) reported on Friday.

Preliminary PSA data showed headline inflation at 3.3% last month, picking up from 2.5% in October and 1.3% in November 2019.

The latest inflation result was the fastest pace in 21 months or since the 3.8% reading in February 2019. It also matched the 3.3% print in March 2019. Year to date, inflation settled at 2.5%, still within the central bank’s 2-4% target.

AAA Southeast Equities, Inc. Research Head Christopher John Mangun said the PSEi may retreat in the next trading session as selling pressure has picked up.

“But a successful break above this level will encourage more bullishness. Investors remain optimistic that business activities continue to pick up due to increased government and consumer spending this month,” Mr. Mangun said in a mobile phone message.

“Immediate resistance is 7,263 with next resistance at 7282 while immediate psychological support is 7,000 with major support at recent low of 6,740,” Diversified Securities’ Mr. Pangan said. — Revin Mikhael D. Ochave

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global plastic pollution treaty, weeks...

Economy

By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded its growth forecast for the Philippines for this year and 2023, citing an “accommodative”...

Economy

THE PHILIPPINE auto industry’s sales recovery will likely be derailed if a measure reimposing excise taxes on pickup trucks is signed into law, according...

Economy

THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected to...

Economy

THE ASIAN Development Bank (ADB) is planning to allocate at least $14 billion for a program aimed at easing a food crisis in the...

Investing

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.