Stocks forecast to rise
THE LOCAL stock barometer is seen trading with some upside this week, aided by month-end and quarter-end window-dressing activities.
Last week, the Philippine Stock Exchange index (PSEi) slightly gained to end at 7,622.05 on Friday from the previous week’s close of 7,601.17.
Across the globe, all eyes are still on Greece as the debt-strapped nation has yet to strike a deal with creditors, which means a default remains a key risk.
“Chart-wise, the week’s close at 7,622.05 remains supportive of a test toward 7,800,” said Banco de Oro Unibank chief strategist Jonathan Ravelas. On the other hand, he said the support level for the market was at 7,500.
Luis Gerardo Limlingan, managing director at local stockbrokerage Regina Capital, said a cautious position was suggested for this week due to the expectation that that index would hold above its 200-day moving average.
“With volatility levels decreasing, expect less erratic intraday movements to give more stability to price movements,” Limlingan said.
Key resistance was seen at the 50-day moving average of 7,714 that, if broken, would trigger an upward reversal, he said.
“On the other hand, failure to hold the 200-day moving average will cause another corrective wave to retest 7,360,” he said.
As the month of June draws to a close, other dealers said some window-dressing activities could also help perk up the market this week.
Last Friday, the closely watched Dow Jones industrial index gained 56.32 points or 0.31 percent to close at 17,946.68. Doris Dumlao-Abadilla
