Philippine stocks to remain buoyant this week
Philippine Daily Inquirer
The local stock market may consolidate above 5,300 this week on positive second-quarter local corporate earnings and a recovery in US equities.
Last week, the main-share Philippine Stock Exchange index gained 1.27 percent to close at 5,285.91.
“Economic trends in the US might help [end the] weakness in the euro area, although more spotlight might be made on the latter this week,” said Freya May Natividad, an analyst at 2TradeAsia.com.
Natividad said chartists were keeping an eye on whether 5,400 could be retested or could consolidate “smaller highs” slightly above the 5,300 territory. She said the key factor would come from interim results for the first semester, especially for upcoming announcements this week from heavyweights PLDT, Globe, Manila Water, Aboitiz Equity Ventures, Metro Pacific Investments and Ayala Corp.
“Anticipate occasional breathers following a rally and check for momentum build-up,” she said, noting that immediate support was at 5,200 and resistance at 5,300-5,350.
DA Market Securities said the stream of first-half earnings last week was generally positive and that “moving forward, we think that stellar first-quarter earnings will contribute to generally positive first semester results and keep the market buoyant.” It has recommended buying on dips.
Resistance was seen at 5,300, followed by 5,400 while support levels were seen at 5,100 and 5,000.
“The market could still be susceptible to weakness amid external concerns. The investor must also monitor possible lackluster earnings for individual companies,” it said.
AB Capital Securities said the decrease in the market volume and value might be mirrored this week. “Investors are recommended to stay on the sidelines while waiting for more earnings report and pursuing profit-taking as the ‘ghost month’ draws near,” it said.
AB Capital Securities expects the index to range between 5,372.03 and 5,143.99 given the lower market volume and anticipation of the “ghost month.”—Doris C. Dumlao
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