PSEi seen testing new high

MANILA, Philippines - The local benchmark index will attempt to establish a new all-time high this week after successfully recording a new intraday high last week.

Analysts said the Philippine Stock Exchange index (PSEi) is set to test the 7,450 level this week following last Thursday strong rise.

 “Having breached 7,413 during the week, this level would be re-tested as buyers consolidate at 7,200 to 7,300,” said Jason Escartin, investment analyst at 2tradeasia.com.

The PSEi will try to beat its best close recorded on May 15, 2013 at 7,392.20.

Escartin, who placed immediate support at 7,200 and resistance at 7,350 to 7,450, said this week’s likely movers aside from overseas developments would include the government planners’ upcoming economic briefing.

He said investors would be in search for indications on directions that will be taken by government planners for 2015. 

 “Market watchers will heed for clues at the fiscal front, given the region-wide challenge for gradual tightening in monetary policies,” Escartin said.

The market finished with a slight technical pause toward the end of the week on the back of mixed responses to regional and domestic events. The main index closed in the negative territory at 7,261.30 on Friday.

Week-on-week, the bellwether PSEi was 26 points or 0.36 percent lower with a slight net foreign selling noted at P55 million from P352 million.