Stocks seen to strengthen

THE LOCAL stock barometer is seen to firm up this week but a tough barrier remains at the 7,200 mark.

Last week, the Philippine Stock Exchange index (PSEi) lost 83 points or 1.17 percent to close at 7,055.74.

Local stockbrokerage AB Capital said technical indicators suggested that the upward trend might continue in the short-term. However, it said it was cautious that any bullish rally this week might not be sustained as some indicators were showing that the market was nearing “overbought” levels.

“A breach above the 7,200 resistance allows the index to resume its bullish trend,” AB Capital said.

The brokerage said all eyes would be on China’s third-quarter economic growth numbers as investors await whether the expansion would reach at least 7 percent.

Luis Gerardo Limlingan, managing director at Regina Capital Development Corp., said the index might continue to consolidate as technical readings were still struggling out of sideways range. Doris Dumlao-Abadilla