Philippine Stock Exchange : Index seen moving sideways this week

MANILA, Philippines The stock market is expected to move sideways this week, analysts said."Abreakbelow the 7,200 levels will call for further losses to the 7000 levels," said Banco de Oro chief market strategist Jonathan Ravelas.Ravelas said local investors solidified their gains last week amid renewed valuation concerns.The Philippine Stock Exchange index (PSEi) settled at 7,245.13 last week, 1.6 percent lower week-on-week.Paolo Hizon of Unicapital Securities said the local stock barometer is nearing the support level of its uptrend channel following a five-day pullback.For Luis Limlingan, managing director at Regina Capital, the index would likely move in sideways to down manner.element-invisibleBusiness ( Article MRec ), pagematch: 1, sectionmatch: 1"Traders are still advised to keep their stop triggers close because we expect volatility to remain at its 14-day average. In case of rallies, we advise taking advantage of those to unload positions because we see heavy resistance at 7,400," Limlingan said.Jason Escartin of 2TradeAsia.com said investors also continue to keep a close watch on the move of the US Federal Reserve."The Fed is now expected to raise rates two times this year, down from four hikes seen in December 2015. Looking at the latest non-farm payrolls in March, results would indicate the US economy is strengthening but not at a pace that warrants immediate action at this month's policy meeting," Escartin said.China will also be closely watched by investors."Sentiment may be mixed on China, considering the increased likelihood for SandP's credit rating downgrade (from AA-). This comes on the heels of the agency's cutting of its outlook on the country from 'stable' to 'negative,' as fiscal condition and debt metrics may deteriorate," Escartin said.Lingering concerns on global crude prices are also weighing on sentiment as investors are waiting for a deal that would cut production and stabilize prices, he added.© Pakistan Press International, source Asianet-Pakistan

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