The Philippine Stock Exchange Index (PSEi) is projected to face a decline due to a weaker peso and negative sentiment stemming from Donald Trump's recent election victory. On November 15, 2024, the PSEi rose by 1.82% to close at 6,676.65, but this followed a significant 4.3% drop week-on-week. Analysts are concerned about the implications of Trump's protectionist policies, particularly his pledge to impose tariffs on Chinese imports exceeding 60%. [118dcaa0]
The peso has also weakened, closing at P58.732 per dollar, down 47.20 centavos from P58.26 on November 8. This depreciation adds to the market's challenges, as it raises concerns about trade dynamics and global economic growth. Market analysts have identified support levels for the PSEi between 6,400 and 6,550, with resistance anticipated at 7,000. [118dcaa0]
Despite the recent uptick in the index, the overall sentiment remains cautious. While some positive corporate earnings reports may provide temporary support, the overarching concerns regarding trade relations and economic stability are likely to weigh heavily on investor confidence moving forward. [118dcaa0]