The Philippine Stock Exchange index (PSEi) is seen to test the 7300 level this week as investors are seeing clearer signals on the US Federal Reserve’s intention to increase interest rates this year. Analysts also added that the local index remains upbeat amid strong economic fundamentals of the country.

Here are three fast facts on the market performance from Jan. 9-13.

 

1. The PSEi could boost as plans to improve the US economy unfold.

“Investors are seemingly focused on the Fed minutes’ emphasis on growth, which should lead to improved funds flow,” Business World reported online brokerage firm, 2TradeAsia.com, as saying. It added that the investors are also “more alert in reinvesting their cash.” This would be expected as revisions of the economic and earnings outlook this year are anticipated.

“Even as inflation for 2017 is seen to average 3.3 percent, players could look forward to improved labor data, especially once fiscal projects are rolled out,” 2TradeAsia.com said.

2. The PSEi is seen to support the 7000 levels as investors have positive sentiments over the country’s economic performance for 2017.

“Investors may also be positioning ahead of strong full-year corporate earnings as well as a solid full-year GDP growth rate that would place the Philippines ahead of its regional peers,” The Philippine Daily Inquirer reported AB Capital, as saying.

3. The PSEi would track various global indicators this week and next week.

The PSEi would perform based on the following catalysts: China inflation and production data, US employment data and Fed Chair Janet Yellen’s speech on Jan.19 (Jan.20 PHT) for guidance on interest rate increases this year could be important catalysts.

“We can expect the market’s gains to wane, though the Fed speech could be a catalyst or a headwind, depending on their dovish or hawkish tone,” AB Capital said.

What do you think of the PSEi forecast from Jan.9-13? Let us know in the comments section below.