The next wave of corporate earnings is seen to dictate the trend for the stock market this week again given its favorable impact on Philippine shares during the prior trades.
“Earnings, or more accurately expectations over earnings, was the main fulcrum on which sentiments turned and trading and investment decisions revolved [in the prior trends]. This will continue to be the case in the next couple of weeks,” Jun Calaycay, Accord Capital Equities Corp. analyst, said.
According to Calaycay, this is good for the domestic market as investors will have something else to chew on in the next month-and-a-half besides the day-to-day developments across the borders.
“The still positive outlook for 2013 earnings should prop up sentiment against the rather ‘touch-and-go’ character of global markets,” he further said.
For the first time in six days, Philippine shares opted to take a rest from its continuous run-up.
“Pullback on Friday was welcomed and expected after rallying for five consecutive days. Technical indicators show overbought signals and there was a need to pullback/ pause to provide healthy support for the next leg up,” Nisha Alicer, DA Market Securities Inc. analyst, explained.
“We’re looking at retesting supports, 6,233-6,105, but to be supported by demand which has been sustained,” she added.
With investors possibly trying to digest anew the country’s bright economic outlook, Philippine shares went to its fifth consecutive winning streak on Thursday amid losses on Wall Street and Asian Markets.