"The market remains in consolidation as stronger economic data will have to reinforce positive sentiments of investors. We expect some resistance to come on this recent uptrend of the market," RCBC Securities said.
The Philippine composite index closed 20.71 points higher at 1,582.04 last Friday on follow through bargain hunting led by select blue chips and second-liners. Soft crude oil prices also boosted buying sentiment.
Telecom stocks led the uptick with Philippine Long Distance Telephone Co. closing P15 higher to P1,260 and Globe gaining P20 to P870.
Grace Cerdenia of stock portal 2tradeasia.com said prospective players are awaiting how inflation figures will fare in August. The Bangko Sentral ng Pilipinas last week said consumer prices are expected to hit 7.1 percent this month from 6.6 percent in July due to the combined impact of the increase in oil prices and tight supply of some agricultural products.
However, she said the recent decline in crude oil prices might spark some buying interest from some investors though volatility is likely to remain on investors’ expectation card for the remaining months this year.
"Other than telco, energy as well as mining-related choices, selected large-cap property shares might also come into focus as long-term investors shift part of their funds in assets that appreciate over time," Cerdenia said.
BPI Securities said the market is likely to consolidate between 1,572 to 1,600 points. While it broke through the immediate down trendline resistance at 1,575, the Phisix still needs to break above the 1,600 to 1,620 resistance range to suggest a more bullish outlook for the market, BPI Securities said.
The top index gainers last week were Ionics which rose 41 percent, DMCI Holdings (+ 22 percent), UCC (+20 percent) and Music (+17 percent).
UCC rose P0.30 to P2.12 on expectations of a revenue boost on reports that the government has decided to impose a temporary ban on the sale of cement by its rival, Solid Cement Corp. following allegations it has been producing substandard cement.
Ionics gained P0.46 to P2.18 on hopes that the company will be able to sustain its recovery, after having narrowed its net losses for both the second quarter and the first half to June. Net loss for the second quarter was at P121.5 million as against P894.55 million last year.
Also noticeably higher were the Gokongwei group – JG Summit added P0.10 to P1.72 while URC rose P0.50 to P8.10.