Local stocks are seen trading with a bullish bias this week following last week’s breakout by the main-share index of a major barrier.
The Philippine Stock Exchange index ended 1.4 percent higher last week to close at 4,351.63. It is now about 3.6 percent ahead of its end-2010 level of 4,200 and is nearing the record-high of 4,413 seen in November last year.
With the PSEi breaking out of a two-month consolidation range and ending at a new eight-month high last Friday, AB Capital Securities said the momentum might carry over to this week’s trades.
“Technically, the market is turning positive despite numerous fundamental headwind,” the brokerage said.
The immediate resistance for the PSEi was seen at its recent high of 4,413 while support base was seen at 4,230.
AB Capital said the key drivers for this week would mostly come from external sources such as the key European Central Bank
meeting on interest rates.
“More importantly, we will be getting the latest US employment data. The latter will be key for the market as it will show if the global economy is indeed on the road to recovery,” AB Capital Securities.
AB Capital Securities noted that an unexpected development last week was the report that PLDT might have breached its foreign ownership limits. As of the week’s close, however, the market has turned optimistic that the issue would be resolved soon.—Doris C. Dumlao