Market seen going back to 7,900-pt level this week
Fresh from a clean slate last week, the benchmark stock index is expected to pursue greater heights this week with a return trip to the 7,900 mark seen imminent.
Analysts expect the stock market to ride on last week’s positive momentum when it closed all five sessions in the green.
“The Philippine Stock Exchange index (PSEi) is expected to continue its advances from last week given the improved readings coming from its indicators. Also, since the index recently breached its trendline resistance, some accumulation can be done especially for issues that bounced above their respective support points,” said Luis Limlingan, managing director at Regina Capital Development Corp.
Week-on-week, the PSEi gained 1.53 percent or 119 points at 7,881. It is currently on a five session winning streak.
“The PSEi has once again showed its resilience and will continue to do so next week as numbers with a positive spin are expected. Albeit having done so gradually, it has been able to restore the index above 7,800 with the 7,900 line well within sight,” Accord Capital Equities Corp. analyst Justino Calaycay Jr. said.
Analysts see the aftermath of the downpour of corporate earnings results last week as well as indications for the country’s first quarter economic performance as possible catalysts for this week.
“With the first quarter results in full swing, firms with upside surprises may enjoy favorable advances at the expense of laggards,” said Jason T. Escartin, investment analyst at F. Yap Securities.
“While this week will remain mainly focused on more earnings from the local corporate front, as well as a balancing of external risks, the market is likely to begin discounting their best guesses for the economy’s first quarter performance. So far, the leads provided by manufacturing, export, remittances, inflation, foreign direct investments – among others – point to a possible surprise,” Calaycay said.
Analysts placed immediate support this week at 7,800, while resistance is at 7,900 to 7,950.