Stocks seen to firm up

The local stock market is seen firming up this week as investors may be encouraged to hunt for bargains after the recent pullback.

Last week, the Philippine Stock Exchange index (PSEi) ended higher by a modest 20.36 points or 0.03 percent to close on Friday at 6,35 9.62. The local stock barometer recently

hit the 6,400 to 6,500 levels before retreating.

“With the 6,300 support holding, the index may retry the 6,500 to 6,550 levels,” said Banco de Oro Unibank strategist Jonathan Ravelas. But he said a break below 6,300 could lessen the likelihood of the index retesting 6,500 in the near term.

Joyce Anne Ramos, an analyst at AB Capital Securities, said the preferred strategy would be to accumulate stocks at support levels.

Despite the recent weakness, Ramos said the local bourse could recover and return to test its resistance levels at 6,550 should there be no negative market-moving reports to be released this week.

“Given this, we advise investors to view the decline as a good opportunity to prudently accumulate stocks,” she said.

Ramos added that among the key indicators to watch this week included the Philippine inflation rate for March, the speech of US Federal Reserve chair Janet Yellen at the National Interagency Community Reinvestment Conference, nonfarm US employment change, trade balance and unemployment rate. Doris C. Dumlao