Stocks seen hitting new record high this week

MANILA, Philippines - The country’s benchmark stock index will be gunning for its 20th record close of the year this week.

Analysts see another sideways trading over the next five sessions, albeit with upward bias that may propel the index to a new all-time high.

“With the way the index is moving right now, it is likely to retain its sideways trend for the next one to two weeks at the least as technical readings have shown  more neutrality than the previous weeks,” said Luis Limlingan, managing director at Regina Capital Development Corp.

“Our projected trading range is 7,686 to 7,862,” Limlingan added.

The Philippine Stock Exchange index (PSEi) recorded its last all-time record close at 7861.33 last March 6.

Last week, the market drifted sideways but managed to finish in positive territory, avoiding what would have been its first back-to-back week-on-week decline for the year.

The PSEi closed eight points or 0.11 percent higher week-on-week at 7,818.38.

“The local market consistently alternated between gains and losses, extending the sideways, horizontal movement since it broke the 7,720-7,730 line,”  said Justino Calaycay Jr., analyst at Accord Capital Equities Corp.

“These optimistic developments should carry over to this coming week absent surprises over the weekend. The PSEi remains confined to a sideways trading band as investors appears to continue holding back on their decisions until more convincing proof surfaces,” he added.

Calaycay said investors’ eyes will be focused this week on the upcoming local Monetary Board’s policy setting meeting on Thursday.

“While the consensus appears to be that regulators will leave rates unchanged, we should be equally conscious of how they will incorporate the prospects of a change in US interest rates by mid-year into the outlook,” Calaycay said.

Analysts placed immediate support at 7,750 to 7,770, while resistance is pegged at 7,850 to 7,900 points.