Market seen returning above 7,200-pt level
MANILA, Philippines - The Philippine Stock Exchange index (PSEi) will attempt to return above the 7,200 level this week despite tight sessions seen ahead in anticipation of the upcoming US Federal Reserve’s meeting, analysts said.
The PSEi ended 1.43 percent or 100 points higher week-on-week at 7,103.55 as sentiments were buoyed mostly by upbeat international markets.
This week, analysts believe that trading will continue to drift sideways but this time, on an upward bias.
Justino Calaycay Jr., analyst at Accord Capital Equities Corp., said there are several major economic events that are poised to provide some spin to investor sentiments on the next five trading days.
Calaycay said third quarter earnings of local companies coupled with the US Federal Reserve’s regular two-day meeting on Oct. 28 and 29 would help buoy the local market.
“It is reasonable that with the above influences, and with locals having something more concrete to chew on from the domestic end, the bias this week will remain positive. A test of 7,200 is likely,” Calaycay said.
But despite the positive bias, analysts at F. Yap Securities said tight trades are expected pending results from the US Federal Reserve’s meeting this week.
“Thus far, the timeframe by which bond purchases might be extended is considered, following earlier indications from some Fed officials. We believe support for continued monetary stimulus might be upheld, as authorities re-assess 4Q numbers prior to effecting a clearer direction for 2015,” said Jason T. Escartin, investment analyst at F. Yap Securities.
For this week, Escartin placed immediate support at 7,100 while resistance is at 7,200 to 7,250.
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