Stock index likely to stay above 7,000

Shares prices are expected to stay above the 7,000-point level this year as investors turn more optimistic on prospects of further economic reopening with the decline in COVID-19 infections.

Analysts said the recent move by the government to ease restrictions in Metro Manila would lift investor confidence as more businesses were allowed to operate at a higher capacity.

The positive sentiments on third-quarter earnings results and hints of improvement on job data could also boost market sentiments.

BDO Unibank Inc. chief investment strategist Jonathan Ravelas said the market was gaining momentum as it broke above the 7,150 resistance level. “Should this condition persist, it might try the 7,400 levels in the near-term. Failure to sustain itself above the 7,150 levels could prompt some profit taking,” Ravelas said.

The PSEi rose 4.4 percent last week to close at P7.213.46 as the government eased mobility restrictions for the National Capital Region.

Topics: Stock Market , Philippine Stock Exchange Index , Philippine Stock Exchange , PSE , PSEi
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