Stocks make case at 8,000 mark

Local stocks will attempt to stay above the crucial 8,000 mark this week while investors await fresh catalysts.

Last week, the Philippine Stock Exchange index (PSEi) rallied by 2.76 percent, or 215.14 points, to close at 8,013.42.

The week’s close showed the market was consolidating within the 7,700-8,000 levels, BDO Unibank chief strategist Jonathan Ravelas said.

“Look for a sustained break above the 8,200 levels to signal the bulls back to play and try the 8,500 levels,” he added. “Failure to sustain the rally above the 8,000 levels could trigger some profit-taking activities and retest the 7,500 levels.”

Ravelas said the PSEi was last week boosted by the US Federal Reserve’s decision to keep interest rates unchanged up to December.

“The market welcomed this development as this gives the local central bank some policy space. This caused investors to trade the market and push the index past the 8,000 levels,” he noted.

Christopher Mangun, head of research at Eagle Equities, said the week could see the PSEi going either way.

Mangun said there were several factors that could cap the market’s rise, the biggest of which was the delay in the approval of the proposed 2019 national budget and its impact on government spending.