THE Philippine Stock Exchange index (PSEi) can lunge at 8,500 anew this week on generally bullish expectations of looming third-quarter earnings reports and as more investors pencil strong economic growth for the same period — scheduled to be reported on Nov. 16 — after news last week quoted Socioeconomic Planning Secretary Ernesto M. Pernia as saying he expects the past three months to have outpaced April-June’s 6.5%, analysts said when asked for their outlook on the days ahead.

The 30-member PSEi finished at its 10th record high for 2017 at 8,497.74 on Oct. 17.

The benchmark index ended last week at a lower 8,420.95 — as profit taking dragged all six sectoral indices into red territory — down a nearly flat 0.319% on the week but still 23.10% higher year to date.

The abbreviated trading week — Monday’s session was cancelled due to a nationwide transport strike — saw PSEi pierce 8,500 for the first time in the middle of trading at 8,586.73 on Oct. 17 — a feat that was replicated the following day that opened at 8,537.66 and peaked at 8,548.58 before pulling back to finish 8,431.73.

“After breaching as much as 8,586 during the week, it is normal to see our gauge pause for breathers to sustain an ascent,” online brokerage 2TradeAsia said in a weekly market note.

“This is warranted, to allow the PSEi to establish firmer ascending channels.”

Philstocks.ph Senior Analyst Justino B. Calaycay, Jr. said leads for the week include third-quarter earnings as well as the looming gross domestic product (GDP) report for the same three months.

“We think it will be an interesting week as bets on a rebound ahead of Q3 earnings and the release of GDP data comes to the trading table,” Mr. Calaycay said in a mobile phone message over the weekend.

2TradeAsia shared this expectation, saying: “The season for 9M17 earnings reporting is on, beginning with MER’s update this week,” referring to Manila Electric Co.’s stock symbol.

“More than quarter-on-quarter comparison, players are likely to give more weight how the last quarter stretch would fare and prospects they could look forward to in 2018.”

At the same time, 2TradeAsia said: “Some players might seize on intraday strength to pocket gains, especially those inclined to react on the on-and-off Fed rate hike prospect [remarks] or other geopolitical events.”

For this week, the online brokerage said, “[m]ovements within 8,400-8,500 should help fortify a new base for the bourse, as fund managers express keen interest in the momentum buildup of government’s infra[structure] projects.”

Support levels this week can play between 8,370 and 8,400, with resistance at 8,500-8,570.

“The slide off the top last week should be inviting to relative bargain hunters even as positions that are still in the green think twice,” Philstocks.ph’s Mr. Calaycay said. “We may see further attempts to settle above 8,500,” — Arra B. Francia

RELATED ARTICLESMORE FROM AUTHOR