PH stocks seen to rise
Local stocks are seen exploring new highs this week as ample financial liquidity in a low-interest environment may keep risk appetite buoyant.
Last week, the main-share Philippine Stock Exchange index gained 0.24 percent to close at 7,279.87.
Banco de Oro Unibank chief strategist Jonathan Ravelas said the local stock barometer had risen for the sixth straight week on better-than-expected first-quarter local earnings, positive effects of the government’s recent sovereign investment grade and the generally peaceful election.
“The recently concluded elections continue to provide the present administration a new mandate to continue its economic and fiscal reforms. This gave comfort to investors that the rally will still continue,” Ravelas said.
Chart-wise, Ravelas said the PSEi would continue to see the market ranging between the 7,100- 7,500 levels in the week ahead. “However, profit-taking activities near the recent tops could occur,” he said.
Freya May Natividad, an analyst at 2TradeAsia.com, said investors might take time to digest developments overseas, particularly on the likelihood of scaling global central banks’ monetary stimulus plan. Pending clear indications, she said volatility might be expected to prevail in equities as some investors might be prompted to switch to other financial instruments to optimize yields.
“The local mart’s correction the prior week might be seized by bargain hunters, ahead of 7,400-7,500 next resistance target,” Natividad said. “Anticipate technical breathers, especially once positive news is digested in the price.”
She said strong support was seen at 7,200, and incentives to accumulate would be predominantly liquidity-driven. Immediate support was seen at 7,250 and resistance at 7,350-7,400.—Doris C. Dumlao
