US inflation and BSP actions are the focus for investors this week

The stock market aims to maintain its momentum this upcoming week as investors seek guidance from the upcoming US economic data and the policy rate-setting meeting of the Bangko Sentral ng Pilipinas (BSP).

The benchmark Philippine Stock Exchange index (PSEi) concluded last week’s holiday-shortened week unharmed, extending its winning streak to a fifth consecutive session.

Managing director Juan Paolo Colet of China Bank Capital Corp. mentioned that the market has been performing well, but is anticipated to encounter increased pressure to consolidate below the psychological resistance at 7,000.

He also highlighted that this week’s pivotal events that will affect the overall market direction are the release of US January consumer price index data and the outcome of the BSP’s monetary policy meeting.

RCBC chief economist Michael Ricafort noted that after closing at 6,850.16 last Thursday, the PSEi has achieved gains for the third consecutive week and remained higher for almost all weeks since the beginning of 2024.

Despite this, he cautioned that sustained breach above 6,800 levels could lead to further upside potential towards the 7,000 levels in the coming weeks or months.

Ricafort identified immediate minor support levels at 6,540 to 6,690, and immediate major support at the 6,310 to 6,430 levels, which he believes will maintain the underlying upward momentum over the past three months.

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