The Philippine Stock Exchange Index (symbol: PSEi) continued to move lower last week, highlighting the weakness in the local market. The index broke the 5,900 level and closed the week at the lows on higher volume compared to the prior week. It is likely that more investors have cashed in or stayed neutral ahead of the upcoming holidays.
As the year draws to a close, we expect lighter trading volume in the days ahead. The December low can still come under an attack. Yearend volatility will dictate if price will reach the 2013 low set last August 28 at 5,562.
Key areas to watch:
Support: 5,700, 5,562 (2013 low), 5,500
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