PSEi (finally) closed above the 7K psychological barrier

Merkado Barkada

September 13, 2024 | 8:00am

The PSEi gained 1.15% yesterday to close at 7,025 [link] and finish the day in the 7000s for the first time since Feb. 6, 2023. The pump was broadly based, with all industry groups finishing in the green, led by Property (+1.4%), Services (+1.3%), and Holding Companies (+1.2%). Foreign players were net buyers for the 9th consecutive trading day; foreign buyers have outpaced foreign sellers on 24 of the past 25 trading days stretching back to July 29. In that time, foreign investors have added P11.2 billion in investments in PSE companies.  

MB BOTTOM-LINE:  There’s a long list of possible drivers for why traders felt comfortable with crossing into the 7s now as opposed to some other time, like the US inflation data from August being marginally better than expected, or NVIDIA sparking a surge in US tech stocks prior to the PSE’s open, or the NEDA boss mentioning that PH GDP could grow faster in H2. As they say, success has a thousand fathers but failure is an orphan. Now that we’ve finally entered a new biome, let’s see how enthusiastic investors are about staying here. The next level of resistance is just 75 points away at 7,100 to 7,150, and we are just 25 points above the 7k level of support. We’re in a really tight band after nudging up against the 7k class ceiling for a month. Will traders look at this as the new floor to support another leg of buying, or will they get skittish and race for the exits to take profits and pass the bags off to retail? 

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