Philippine stock index seen revisiting 7,000-mark #PSEi MANILA – After piercing the 6,900 level, the Philippine composite index may have enough gas to make a run for the 7,000-mark, but analysts say the challenge is to stay above it. We may see the market test the next resistance at 7,000 and given the gearing of the rally, theres a possibility it may advance further before selling pressure tempers the advance, said Gab Aquila, equity analyst at DA Market Securities. Continuity of the week’s momentum with 6,900-6,950 as the new support base will be tested, as volume turnout has been relatively modest. In case supply pressure emerges with the coming ‘ghost month’ in August, there might be possibilities for the market to trade within 6,800 to 6,900, said Jason Escartin, investment analyst at 2TradeAsia. The Philippine Stock Exchange index (PSEi) is fresh from breaching the 6,900-mark, or returning to levels last seen in May 2013 when Federal Reserve Ben Bernanke first signaled the US central bank will start winding down its massive stimulus program, triggering a major selloff in risky assets. Week-on-week, the benchmark index rallied 1.75 percent to 6,962.28 on slower-than-expected inflation and strong US jobs data. However, investors will be eyeing fresh catalysts to keep the index above the 6,900 to 7,000 levels. It is likely the measure will breach the latter within the week, it remains a question of sustaining trades above it. Orders on the long side may thin out absent new hints on the global economic recovery and ahead of a Bangko Sentral ng Pilipinas rate-setting meet by the end of the month. Adjustments to the full-year market index outlook should be released soon after most targets were hit, said Jun Calaycay of Accord Capital Equities Corp. We do not expect economic data releases slated for next week to significantly affect the local bourse. Given this, we expect the index to trade within the range of 6,927 to 7,050, BPI Asset Management said in a weekly research note. interaksyon/business/90628/philippine-stock-index-seen-revisiting-7000-mark
Posted on: Sun, 06 Jul 2014 14:33:02 +0000
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