MANILA, Philippines - Fresh from advancing to a new all-time high at last week’s close, the Philippine stock market is expected to follow-on its momentum in the succeeding trading days despite coming out of a two-day trading halt due to the Pope’s visit to the country.
Analysts said the market is seen to tread the 7,500 path once more this week while not discounting the possibility of profit takers engulfing the market as well.
Justino Calaycay Jr., analyst at Accord Capital Equities Corp., said investors’ risk appetite has obviously been whetted by the index’ surge to fresh records, twice in the span of four sessions.
The Philippine Stock Exchange index (PSEi) finished last week strong by setting a new record high upon closing at 7,490.88, beating a previous high it posted just a week ago.
The index was also able to breach the 7,500 level for the first time, recording a new intra-day high of 7,530.41.
“Whatever fundamental reason that backs the market’s sudden reach into uncharted territory can only be based on domestic factors. The market’s rise comes even as global stock markets reel off extended declines,” Calaycay said.
“The attribution has largely been to the still positive outlook for the domestic economy, with early projections putting the year’s growth pace to hit 6.5 percent from an assumed six percent this year,” Calaycay said.
Despite the positivity surrounding the market, AB Capital Securities Inc. analyst Alexander Tiu said the market remains susceptible to profit taking, especially with its recent ascent.
Still, Tiu has placed a new support level at 7,400.
“Now that the 7,500 level has been breached, we might see the index rise as high as 7,700, although probably not this week yet,” he said.