Weak trading expected
THE PHILIPPINE equities market may remain weak early this week as investors continue to lock in profits after the benchmark index fell sharply in the last few trading sessions.
This week, “we expect investors to continue taking profits,” stock brokerage firm I.B. Gimenez said in a research note.
It added that investors would also be closely monitoring the inflation report, which could shape the direction of trading, largely affected by worries over volatility that could arise from the United States Federal Reserve’s decision to raise the interest rate.
April Lee-Tan, COL Financial Group research head, said in an interview last week that investors would also be looking toward first quarter earnings expected to be released in the coming days.
She noted that certain stocks and airlines likely benefited from the significant drop in global oil prices.
For its part, I.B. Gimenez said better corporate earnings could push the Philippine Stock Exchange index back above the 8,000 level to 8,400, adding that there was also a possibility the PSEi could first reset to the 7,400 level.
Jonathan Ravelas, chief strategist at BDO Unibank Inc., agreed that there was a chance for more declines. He said on his official Twitter account that last week’s close of 7,714.82 for the PSEi—down 2.9 percent week-on-week—signaled that the measure could move toward the 7,500 level.
First Metro Investment Corp. and the University of Asia and the Pacific said in a joint report released last week that investors should “remain invested and take advantage of market corrections to increase exposure.”
The year-end target for the PSEi remained at the 8,300-8,500 range, FMIC-UA&P said. Miguel R. Camus
