Stock market rally hits resistance


The local stock market ended slightly lower as the PSEi has hit its resistance level.

The main index shed 3.74 points or 0.05 percent to close at 6,898.80 although only the Financials and Property counters retreated while the Services sector led advancers.

Volume fell to 3.06 billion shares worth P3.61 billion as losers beat gainers 118 to 97 with 47 unchanged.

“Philippine shares experienced modest declines as investors anticipate the upcoming release of the U.S. inflation data coming out tonight,” said Regina Capital Development Corporation Managing Director Luis Limlingan.

Philstocks Financial Senior Analyst Japhet Tantiangco said “The local bourse dropped as investors took profits out of its preceding 2-day rally wherein it gained 2.05 percent.”

He noted that, “The market was unable to sustain its position at the 6,900 level showing this to be a strong resistance so far.”

AAA Equities Head of Research Chris Mangun said “The market stalled and ended slightly lower as it is coming up against its major resistance levels. Investors started taking profits, which was expected, as we approached the end of the week.”

He added that, “The general sentiment continues to turn more optimistic as new COVID-19 cases begin to decline again after we saw higher cases in the last two weeks. The continuous progress in the rollout of vaccines also added to the optimism.”