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Sunday, May 19, 2024

Stock index seen breaching 7,000 level this week

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Philippine stocks may make another attempt to breach the 7,000 level this week, as investors await the February inflation report.

Analysts said, however, the market’s failure to hit the 7,000 level last week indicates that the selling pressure is strong.

Philstocks Financial Inc. research head Japhet Tantiangco said investors may take cues from the upcoming inflation data.

“An inflation print significantly higher than January’s 2.8 percent may cause a pullback from the local investors,” Tantiangco said.

“Investors may also watch out for our upcoming labor market data as this would give cues on the health of the general economy,” he said.

The local market’s immediate major support is seen at 6,700 level, and resistance at 7,000 level this week.

Aside from macroeconomic data, investors will also continue to monitor corporate earnings by listed firms, which so far have been better than the previous year’s.

“If this trend continues, then it may help in sustaining the positive sentiment in the market,” Tantiangco said.

Online brokerage firm 2TradeAsia.com said global watchers were also expected to monitor the economic data releases, while awaiting the March 19 to 20 US Federal Reserve meeting.

“US inflation data closing above 2 percent target last month plus strong jobs data, among other factors, are keeping Fed officials from pulling the trigger on lower rates,” it said.

The bellwether Philippine Stock Exchange Index closed at 6,919.58 last week, nearly flat amid profit-taking in the latter part of the week.

Foreign investors were net buyers last week by P1.25 billion, while average daily turnover improved to P6.44 billion.

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