The local stock market is seen trading with bias on the upside this week, building on the momentum seen last week.
The main-share Philippine Stock Exchange index rebounded by 2.04 percent last week to close at 6,208.82 on Friday.
Joseph Roxas, president of Eagle Equities, sees the PSEi “creeping up slowly” this week, with 6,500 as the next key resistance.
Jonathan Ravelas, chief strategist at Banco de Oro Unibank, said market sentiment was awakened last week when news came out that 3rd quarter economic growth was at a strong 7 percent, the fifth consecutive quarter that the economy grew by at least 7 percent. “Chartwise, some buying support emerged at the 5,900 level, causing the index to break its six-day decline. This week’s close at 6,208.82 confirms the bottom at 5,955,” Ravelas said. The market may try the 6,300-6,500 levels this week,he added.
BDO is expecting the local stock barometer to end the year at 6,500.
Online stock brokerage 2TradeAsia.com said local equities had benefited from a ‘post-(US) Thanksgiving’ cheer during the week, as improved US economic data aided sentiment. Apart from the recent conclusion of a US-Iran deal, it said reports over China’s economic reform to accelerate capital market development added to the positive outlook. Doris C. Dumlao