Slow PH trading seen | Inquirer Business

Slow PH trading seen

/ 07:57 AM March 23, 2015

MANILA, Philippines–The local stock barometer is seen attempting to consolidate above the 7,800 level this week but trading volume may ease ahead of the Lenten break.

Last week, the main-share Philippine Stock Exchange index (PSEi) firmed up by 0.11 percent to close at 7,818.38 on Friday, boosted by a dovish monetary outlook by the US Federal Reserve.

AB Capital Securities said prospects of the US central bank holding interest rates at a low level for a longer time frame were considered bullish for asset prices even as Wall Street analysts were still torn between a rate increase in either June or September.


In terms of technicals, AB Capital said key resistance level for the index could be found at 7,862-7,865, with a breach above this level paving the way toward 7,900-8,000 points. On the other hand, support levels were at 7,730 and 7,650.


“The index continues to trade between 7,730 and 7,860 in the past two weeks and investors are advised to trade the range, slowly taking profits on the resistance levels and accumulating at support,” the local stock brokerage said.

Meanwhile, AB Capital said other technical indicators were showing divergence, with the relative strength index currently showing neutral while the Stochastics oscillator—a technical momentum indicator—was implying a bullish pattern.

Jonathan Ravelas, BDO Unibank chief strategist, said last week’s bias turned from profit-taking to bargain-hunting following the outcome of the US Fed’s two-day policy meeting.

“Chart-wise, continue to see further tests toward the 8,000 levels in the near-term,” Ravelas said. “We  expect the market to range between the 7,750- 7,850 levels in the  week ahead.”–Doris C. Dumlao

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TAGS: Finance, forecasts, Philippines, stock trading, stocks

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