Stocks seen nearing top

WITH the main stock barometer now back to the 7,400 levels, local stocks are seen nearing the top and thus offering little upside room in the short term. Last week, the Philippine Stock Exchange index (PSEi) rose 1.5 percent to close on Friday at 7,411.68 as investors saw the previous week’s pullback as an opportunity to load up on stocks.

Banco de Oro Unibank chief strategist Jonathan Ravelas said valuation concerns and rising expectations of a US interest rate increase, however, had caused the index to shed some of its gains last week. “Although the market has still some room to try the 7,500-7,625 levels in the near term, technical

indicators are hinting that market momentum is slowing down.”

“Implications are that the market rally is losing steam and could be nearing a top. A confirmation break below the 7,350 levels signals further weakness towards the 7,000-7,200 levels in the week ahead,” Ravelas said. Doris Dumlao-Abadilla