Index attempts to break past 7,000 anew

MANILA, Philippines — Local stocks will likely seek direction from the US markets this week in a bid to break past the 7,000 threshold anew.

The benchmark Philippine Stock Exchange index or PSEi ended last week in positive territory, halting a three-day bleeding.

At 6,942.21, the PSEi was up 0.33 percent week-on-week.

For the upcoming sessions this week, China Bank Capital Corp. managing director Juan Paolo Colet said how US equity markets react to the inflation report would influence the direction of the local stock index.

“Our market is poised for another attempt to close above 7,000, but whether it finally succeeds in overcoming the strong resistance at that level will depend largely on the US February consumer price index print,” Colet said.

“If we see data that bolsters bullish bets of a Federal Reserve policy rate cut in June, then our market will likely benefit from risk-on sentiment and move higher this week,” he said.

2TradeAsia.com in a report said the highly awaited US inflation data this week “should inject more activity at the discussion table.”

It said the earnings season likewise continues this week, with results potentially impacting market sentiment.

“The 7,000 zone has so far been elusive, with recent sessions characterized by long wicks signaling strong selling pressure up top, although Friday’s technical confirmation has brought near-term technical relief,” 2TradeAsia.com said.

Support level for this week is seen at 6,800, while resistanceis at 7,000.