MANILA, Philippines - Local news, particularly the slew of reports on corporate earnings and economic managers’ updates, will lead the main index past the 6,500 level this week.
But profit taking is seen to keep local share prices at bay, analysts said.
Jose Mari B. Lacson, head of research at stock brokerage Campos, Lanuza & Co., said more full year 2012 corporate income reports will be released.
For Freya Natividad, investment analyst at brokerage firm 2Trade-Asia.com, local economic and industry prospects will be the focus of investors.
“Prognosis from local economic managers will be highlighted during their summit this week, as fund managers heed for other stimulus support that would help accelerate economic expansion,†Natividad said.
Economic managers will update the public during the Philippine Economic Briefing on Wednesday.
Natividad said investors will be looking for fiscal measures that will help fasttrack industry growth and employment.
The market also wants measures to hasten the awarding process in government’s public-private partnership infrastructure projects, Natividad said.
Week-on-week, the Philippine Stock Exchange index jumped 2.22 percent or 140.06 points to end at 6,458.67.
It posted a fresh record high at 6,470.49 on Tuesday and an intraday high at 6,489.90 on Friday.
“Scout for stocks that have been moving within flat trend lines and monitor potential momentum build-up. Immediate support is 6,400 and resistance is at 6,500 to 6,530,†Natividad said.
The trend of profit taking, which prevailed late last week, will continue this week and keep share prices at bay, Lacson said.
Natividad said the market might experience a “stabilization mode’ temporarily to build sturdier rises towards 7,000.â€
Volume might be lighter as most institutional players go on leave for the Chinese Lunar Year celebration, she said.
Average turnover eased to P8.8 billion last week from P9.357 billion a week ago.