Philippine stocks may firm up

After last week’s correction, the local stocks index may firm up and retest the 5,400 mark this week while investors await fresh incentives to load up on equities now that shares are trading at record levels.

The main index last Friday gave up 70.12 points, or 1.3 percent, to end at 5,369.72, weighed down by global growth concerns.

In its weekly outlook, AB Capital Securities said that after the PSEi’s recent five-day losing streak, the index should recover some lost ground this week.

“However, the market’s upside could be capped due to the lack of a fundamental catalyst,” it said.

Freya May Natividad, an analyst at 2TradeAsia.com, said market declines would be tempered this week.

“This will be driven by an expected increase in corporate and government spending for the remainder of 2012, while consumption is triggered by the seasonal kick in remittances. Long-term players are also seen to reposition portfolios, with the upcoming local elections for 2013,” she said.—Doris C. Dumlao