Headwinds continue to rule the markets

Analysts believe various economic headwinds will continue to weigh on the local market even as the Philippine Stock Exchange rose 9.50 points, or 0.1 percent, to 6361.82 on Friday.

The local market was positive last week, closing up 3.19% on the week, but expects it to be weak this trading week, Japhet Tantiangko, senior analyst at Philstocks Financial Inc., said.

“The sustainability of this rally is questionable due to continued economic headwinds that could dampen sentiment. This includes a further weakening of the peso and problems with the supply of some agricultural products, which create risks for inflation,” Tantianko said.

He believes that the support of the local market is still visible in the range from 6100 to 6150, and the resistance is in the range from 6350 to 6400.

Meanwhile, a report from 2TradeAsia says that inflation, settling at 6.1 percent, means there will be another rate hike by Bangko Sentral ng Pilipinas this month, or more likely around 50 basis points.

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“The Transport CPI is also under more upward pressure from higher minimum tariffs in July, as well as higher import costs due to foreign exchange issues. were at 13 percent last year, one of the highest rates in the region,” the statement said.

It says immediate support will be at 6200 and resistance will be at 6500-6600 as investors should brace for further peso weakening and a halt in capital accumulation.

Finally, Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said that despite the settlement in global commodity prices and oil in particular, this is still being offset by hawkish rate hikes by the Federal Reserve to curb inflation in the United States. States.

He expects that the situation in the financial markets will remain similar as long as the Russian-Ukrainian conflict drags on with resistance levels of 6500-6600. But if there is selling on the rally, it may have upside potential to 6800-7000. As for immediate support, he sees it at 6000-6100.