Stocks seen to weaken on profit-taking

Local stocks are seen continuing to succumb to profit-taking this week to allow investors to reassess their portfolios after the recent run-up of the main index to uncharted territory.

Last week, the main-share Philippine Stock Exchange index (PSEi) slipped by 26.99 points or 0.32 percent to close at 8,420.95 on Friday. A new intra-day peak was set at 8,585.73.

“The market looks like it will continue to decline on profit-taking,” PNB Securities president Manuel Lisbona said. “FOMC (Federal Open Market Committee) decision is also a factor as investors are locking in some gains. Eyes now are on who of the two candidates will replace (Janet) Yellen as chair of the Fed.”

“Local economic factors remain conducive and declines should be treated more as buying opportunities,” Lisbona said.

On Friday, foreign investors were net sellers amounting to P1.95 billion.

Meanwhile, market participants may continue to position ahead of the third-quarter corporate earnings reports, said BDO Unibank chief strategist Jonathan Ravelas.

“Chartwise, the week’s close at 8,420.95 highlights the market could still try another assault toward the 8,500 to 8,600 levels in the near-term,” he said.

BDO sees immediate support and resistance levels at 8,300 and 8,500 levels.

Meanwhile, the local currency last week weakened by 0.12 percent for the fourth straight week to P51.45 against the dollar.—DORIS DUMLAO-ABADILLA