Stock price index seen retesting 8,600

Local stocks are seen striving to retest the 8,600 level in the short term as the third-quarter corporate earnings season winds up.

Last week, the main-share Philippine Stock Exchange index (PSEi) gained 0.68 percent to close at 8,433.48 on Friday.

On Thursday, the Bangko Sentral ng Pilipinas kept its key interest rates unchanged, as expected by the market.

BDO Unibank chief strategist Jonathan Ravelas said investor sentiment from the corporate earnings reports was positive, resulting in the PSEi’s rise for the second straight week.

“Chartwise, the week’s close at 8,433.48 highlights the market could still try another assault toward the 8,600 levels in the near-term,” Ravelas said.

Ravelas sees immediate support and resistance levels at 8,300 and 8,600, respectively.

Many dealers likewise see this as the trading range for a possible consolidation phase.

The PSEi recently hit new intra-day highs, breaching 8,600.

This week, the stock market will have regular trading days even during the Association of Southeast Asian Nations (Asean) leaders’ summit on Nov. 13-15, even if these had been declared by the government as nonworking holidays.