PSE index seen ending year at 8,500

The local stock barometer is seen to firm up to the 8,500 level this shortened trading week—the last for the year 2017 —as investors take last-minute equities positioning for the coming year.

Last week, the Philippine Stock Exchange index added 95.27 points or 1.14 percent to close on Friday at 8,432.31.

Joseph Roxas, president of Eagle Equities Inc., said the PSEi may firm up and end the year at 8,500 as some investors position for 2018.

However, he said trading volume would likely continue to be low. At this time of year, many trading participants are on holiday mode.

The PSE has gained ground for the last three weeks. Last week, the market cheered the passage of the Tax Reform on Acceleration and Inclusion (Train), a tax reform program that is in turn seen to support the “build, build, build” program of the government and boost the economy, BDO chief strategist Jonathan Ravelas said.

“Chartwise, the week’s close at 8,432.31 highlights the market still has some gas to try the 8,500 levels,” Ravelas said.

Immediate support and resistance levels are seen at 8,150 and 8,600 levels, respectively.

Since the start of the year, the PSEi has risen by a total of 1,591.67 points or 23.3 percent from its finish of 6,840.64 last year.

The PSEi is thus expected to close positively for the first time in two years this 2017. The stock barometer slipped by 1.6 percent in 2016 and likewise lost 3.85 percent in 2015.