Bullish trading seen

Local stocks are to reopen Tuesday after the Chinese New Year, still in an upbeat but more cautious mood following last week’s surge to record highs.

Last week, the main-share Philippine Stock Exchange index surged 2.9 percent to end at a new record high of 4,747.90, led by index heavyweight PLDT.

This week, the index is seen testing 4,800 but foreign buying might weaken as some Asian markets are still on holiday following the lunar year turnover.

Foreign investors actively bought into the local market last week, thus bringing the local market to new highs.

Net foreign buying last week amounted to P1.94 billion, although foreign activities softened in the last trading day, BPI Securities reported.

BPI Securities said the key US indicators due this week are jobless claims, a Federal Open Market Committee meeting announcement, durable goods orders, new home sales, gross domestic product, pending homes sales and consumer sentiment.

In general, trading in the local stock market is largely influenced by foreign flows, which are making up for local investors’ increasing profit-taking activities.—Doris C. Dumlao