LOCAL stocks are seen attempting to build a base above 7,500 this year as global investors await the US Federal Reserve’s next policy move during the June 14 to 15 policy meeting.
Last week, the main-share Philippine Stock Exchange index (PSEi) gained 1.38 percent to close on Friday at 7,514.22.
“Chart-wise, the week’s close above 7,500 continues to suggest the market has still some gas to try the 7,560-7,700 levels in the near-term,” said Banco de Oro Unibank chief strategist Jonathan Ravelas. “However, a break below 7,350 could prompt a much larger correction toward the 7,000 levels.”
On Friday, the US reported the weakest jobs data in six years, dashing hopes for a faster economic rebound. The Dow Jones industrial index ended flat last week after the US jobs data soured the market.
Citigroup said in a research note that US Federal Reserve Chair Janet Yellen was “facing the challenge of rebuilding and reinforcing the FOMC (Federal Open Market Committee)’s faltering consensus regarding the timing of the next rate increase.” Doris Dumlao-Abadilla