Stocks to test record highs

Local stocks are seen testing record highs this year as investors continue chasing yields in a low-interest rate environment.

Last week, the index gained 164.29 points or 2.44 percent to close at a new all-time high of 6,891.43 on Friday. The index is nearing its record intra-day high of 6,956.92 hit on April 1.

Jonathan Ravelas, chief strategist at Banco de Oro Unibank, said Friday’s closing implied a test toward the 7,000 level and beyond. “However, profit-taking activities near the recent tops could occur,” he said.

Freya May Natividad, an analyst at 2TradeAsia.com, said the local barometer would likely attempt to move past its previous peak of 6,950 after breaching 6,830 during the previous week. “Ascents would still be liquidity-driven as higher momentum push is anticipated to enable PSEi to climb uncharted territories,” Natividad said. “If gauges weaken, stabilization above 6,800 is seen. Hunt for solid bets with stable growth for the year.”

Immediate support is seen by 2TradeAsia.com at 6,800 and resistance at 6,950-6,970.

Maria Arlysa E. Narciso, an analyst at AB Capital Securities, said the index was still challenging itself to breach the 6,900 resistance. “With the way the market has been moving higher, there seems to be enough fuel for the market to break 6,900,” Narciso said.

Last week’s bounce, Narciso said, erased worries of a major pullback after charts formed risks of a double-top pattern since last month. Support level was seen at 6,560 and resistance at 6,900. Doris C. Dumlao