Local stocks are seen to trade with an upward bias this week as investors scout for bargains after the pullback from recent highs.
Last week, the Philippine Stock Exchange index (PSEi) added 54.03 points or 0.65 percent to close on Friday at 8,365.11.
The stock market has corrected from an all-time high of 8,605.15 that was hit in intra-day trade last Nov. 3.
“The market is trading within the 8,300 to 8,500 range at the moment. Foreign funds were net sellers again last week,” said Manuel Lisbona, president of PNB Securities. “Technically, the market looks poised to continue moving upwards to resistance at 8,500.”
Renewed optimism from investors stemmed from news that the Senate might pass the tax reform bill within the year, BDO Unibank chief strategist Jonathan Ravelas said.
“Chartwise, the week’s close at 8,365.11 highlights the market could still try another assault toward the 8,600 level in the near term,” Ravelas said.
Ravelas sees immediate support and resistance levels at 8,150 and 8,600, respectively.
Meanwhile, the peso appreciated for the second straight week last week, gaining 0.45 percent to close at P50.72 against the dollar. Ravelas said this came after the release of a dovish inflation commentary in the last US Federal Open Market Committee minutes.