Philippine Stock Exchange : PSEi seen moving past 7,000 level this week

MANILA, Philippines The benchmark Philippine Stock Exchange index (PSEi) is seen moving past the 7,000 level this week as global investors are expected to take more risks following China's decision to address its economic woes and the European Central Bank's announcement of new economic stimulus measures."The week's close at 7,098.64 encourages further test of the 7,350 to7,370levels in the near term. Failure to test said levels could call for further losses toward the 6800 to 6900 levels," said Jonathan Ravelas, chief market strategist at Banco De Oro.Reviewing last week's performance, Ravelas said the local stock barometer rose to as high as 7,119.86, a fresh high for 2016 this week, before succumbing to a minor profit-taking."The market close at 7,098.08 is stronger by 2.88 percent week-on-week," he said.Jason Escartin of 2TradeAsia.com said shares are expected to rise on the back of improving sentiment in the US, driven by better-than-expected labor data and recovering oil prices."PSEi zoomed 200 points at 7,098 (+2.89 percent week-on-week), primed by financials (+5.17 percent) mining/oil (+3.48 percent) and property (+3.31 percent). Average turnover fell 12.7 percent at P6.72 billion despite foreigners being net buyers at P373 million on average. Market breadth was positive, 110 to 73," he said.element-invisibleBusiness ( Article MRec ), pagematch: 1, sectionmatch: 1Escartin said oil prices would continue to determine sentiment as producers hesitate to come to the negotiating table without any buy-in from Iran, which remains insistent on raising its production after the lifting of sanctions in January.Also seen affecting investor sentiment is the US Fed's move on interest rates."The Fed is set to meet mid-week as it mulls another round of interest rate hikes amid rising inflation expectations driven by an improvement in the oil market. Despite mounting calls for hiking ahead of inflation, policymakers remain cautious," he said.© Pakistan Press International, source Asianet-Pakistan

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