Weak trading seen

LOCAL stocks are seen to continue trading with caution this week as investors await fresh catalysts to load up on equities.

Last week, the Philippine Stock Exchange index (PSEi) firmed up by 41.58 points or 0.6 percent to close on Friday at 7,247.20.

“Chart-wise, the week’s close at 7,247.20 confirms a near-term top at 7,412. Continue to see further weakness toward the 7,000  levels in the near term,” Banco de Oro Unibank chief strategist Jonathan Ravelas said.

In the week ahead, Ravelas said the market could range between 7,150 and 7,350.

Last week, Ravelas noted that the PSEi had hit a high of 7,302.62 in intraday trading on Monday, only to trade at lower

levels throughout the rest of the week with a last-minute recovery on Friday.

“Renewed valuation concerns as well renewed risk aversion caused both local and foreign investors to solidify their gains from the recent rally,” he said. Doris Dumlao-Abadilla

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