Investors ready to cash in last week’s gains from stocks
The Philippine Stock Exchange index (PSEi) is expected to succumb to profit-taking this week after capping a four-day rally as investors cheered the Bangko Sentral ng Pilipinas’ (BSP) decision to rule out future jumbo rate hikes.
China Bank Securities research director Rastine Mackie Mercado said the lack of major catalysts could push investors to cash in their recent gains.
“We still think that the market is due for a pullback as hefty accumulated gains made over the past six weeks may prompt wider profit-taking,” he said.
On Friday alone, the benchmark PSEi increased by 1.17 percent, or 76.43 points, to close at 6,606.94 while the broader All Shares index inched up 0.89 percent, or 30.40 points, to sit at 3,452.44 by the closing bell.
The stock market also saw support from foreign investors buying up shares.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said net foreign buying last week amounted to $41.8 million, higher than the $29.9 million in the week earlier.
“Apart from the sustained upward market momentum, the continued strengthening of the peso against the greenback may have also improved foreigners’ appetite for local equities,” Mercado added.
On Friday, the peso settled at P56.67 against the greenback, hitting a fresh two-month high.
