Local stocks, which have been on an upswing for seven straight weeks, are seen to draw support from the unfolding local corporate earnings reporting season this week.
Last week, the main-share Philippine Stock Exchange index gained close to 1 percent to close at 6,521.64 on Friday. The 6,500 milestone was breached last week although overall gains were capped by a landslide in Semirara Mining’s coal mining pit in Antique as well as the reduced weight on the Philippines in the closely tracked MSCI index.
“The better-than-expected growth numbers and expectations of better fourth-quarter 2012 and full-year 2012 earnings continue to keep the market on the upbeat,” said Jonathan Ravelas, chief strategist at Banco de Oro Unibank. “The market has still some gas to retry the 6,550 levels in the near term. However, bear in mind that the market is ripe for a near-term correction.”
Freya May Natividad, an analyst at 2TradeAsia.com, said local investors might search for a modest range to trade as they gather reasons that could propel the PSEi higher.
“Rises this week will take its support from a recovery in average momentum, plus sustained net foreign buying turnover,” Natividad said. “Spot for good buying opportunities.” Immediate support for the PSEi was seen at 6,480-6,500 and resistance at 6,600-6,650.
Natividad said 2012 earnings results should soon trickle in from select listed firms’ announcements in the coming weeks.