Local market seen to reach 7,200 points

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MANILA – The Philippine Stock Exchange index (PSEi) is seen to reach 7,200 points this week despite the possible effects of the upcoming US Federal Reserve’s meeting, according to analysts.

The PSEi ended the week-on-week with an increase of 1.43 percent or 100 points at 7,103.55.

This week, analysts see that trading will continue to drift on an upward bias.

According to Justino Calaycay Jr., analyst at Accord Capital Equities Corp., there are several major economic events that may affect investor segments.

He said that the earnings of local companies for the third quarter together with the two-day meeting of the US Federal Reserve will help boost the local market.

“It is reasonable that with the above influences, and with locals having something more concrete to chew on from the domestic end, the bias this week will remain positive. A test of 7,200 is likely,” Calaycay said.

Despite this, F. Yap Securities’ analysts said that there will be a possibility of tight trades given the pending results of US Federal Reserve’s meeting.

“Thus far, the timeframe by which bond purchases might be extended is considered, following earlier indications from some Fed officials. We believe support for continued monetary stimulus might be upheld, as authorities re-assess 4Q numbers prior to effecting a clearer direction for 2015,” said Jason T. Escartin, investment analyst at F. Yap Securities.

For this week, Escartin said that immediate support is at 7,100 while resistance is within the range of 7,200 to 7,250.