LOCAL stocks are seen to continue trading with caution this week as the strong US jobs data boosted prospects of higher US interest rates starting next month.
Last week, the Philippine Stock Exchange index (PSEi) closed lower by 17.48 points to 7532.52.
The closely watched Dow Jones industrial index lost 46.37 points to close Friday at a six-month low as upbeat American jobs data affirmed expectations of an increase in US interest rates by September. The Dow fell for seven straight sessions. Some 215,000 new jobs were created in the US in July while the unemployment rate was steady at 5.3 percent, tracking expectations.
Local stockbrokerage AB Capital Securities said the PSEi’s failure to breach the key 7,670-7,700 level paved the way for profit-taking toward the support level at 7,500. Other technical indicators showed a “neutral-bearish” sentiment, the brokerage said.
“Immediate support can be found at 7,470-7,500 and investors may wish to accumulate at those levels,” the brokerage said.
Luis Gerardo Limlingan, managing director at Regina Capital Development, said the index was still expected to consolidate between 7,660 and 7,467.13 this week. He said there would be a slightly bullish bias, citing improved technical readings and solid higher low base. Doris Dumlao-Abadilla