Philippine stocks seen to gain
The stock market may continue to gain this week as cash-rich investors may decide to pursue selective buying and take their cue from the start of the first-quarter corporate earnings report season.
Last week, the Philippine Stock Exchange index rallied for four straight days, hitting new record highs before pulling back on Friday. Week on week, the index was still a net gainer of 12 points to 5,169.05.
“For the week ahead, we expect the index to continue rising, this time towards 5,300. However, it should be noted that the RSI [relative strength index] technical indicator shows that the market appears to be overbought and a reversal may be in sight,” said Banco de Oro Unibank strategist Jonathan Ravelas said.
A clear break below 5,100 may trigger further losses toward 4,950-5,000, he added.
Eagle Equities president Joseph Roxas said money was still flowing to the market and the sentiment remained upbeat.
While further gains for the PSEi may be capped, investors are still looking for opportunities in the broader market, Roxas said.
According to Freya May Natividad, an analyst at 2tradeAsia.com, temporary breathers may occur this week.
“Having breached 5,247, barometers might take a technical breather this week as fund managers hunt for positive news that could catapult the market to the 5,500 territory,” Natividad said.
Immediate support is at 5,100 and resistance at 5,200-5,220, she added.—Doris C. Dumlao
