Window-dressing seen to lift stocks

THE LOCAL stock market is seen being perked up by the start of yearend window-dressing this week, supporting the seasonal “Santa Claus” rally.

Last week, the Philippine Stock Exchange index (PSEi) gained 1.96 percent to close at 6,867.07 on Friday despite some profit-taking following the short-lived euphoria over the start of the US Federal Reserve’s interest rate liftoff.

This week, market sentiment might remain cautious but the start of yearend window-dressing activities could boost the main index, said Joseph Roxas, president of local stockbrokerage Eagle Equities.

He said the “Santa Claus” rally might still happen, with the next resistance likely at around 7,000.

Despite hitting new highs earlier this year, the PSEi is so far behind its end-2014 closing of 7,230.57. The market has risen in the past six consecutive years but jitters over the tightening of US interest rates alongside China’s slowdown curbed its rise this year. It remains to be seen whether the PSEi will have a positive close.

“Chartwise, continue to see the market range between the 6,800 and 7,000 levels in the week ahead,” said Banco de Oro Unibank chief strategist Jonathan Ravelas. Doris Dumlao-Abadilla