PHILIPPINE shares are seen likely to be on the soft side this week as market consolidation continues, although investors appear eager to jump on catalysts for window-dressing as the end of the month approaches.
Summit Securities President Harry Liu said the market seems to have absorbed the events of recent weeks and is only waiting for an opportunity to break through the 8,000-point level.
Portfolio realignment may be set to take center stage next, 2Trade Asia added.
Liu was referring to the recent result of the monetary policy meeting in which the Bangko Sentral ng Pilipinas monetary board decided to keep rates unchanged, even as the US Federal Reserve raised its benchmark rates by 25 basis points earlier.
“We’ve been staying here in the consolidated area between 7,800 and 8,000 … the investing public is just waiting for further developments,” Liu said, adding, “We’re waiting for a good catalyst news that can perk up [the market]and break through the 8,000,” he added.
Joylin Telagen , research head at IB Gimenez Securities, sees a rebound soon due to “a possible window-dressing.”
Meanwhile, online brokerage firm 2TradeAsia said as a result of the quarter-end season, portfolio realignment might take center stage as fund managers prepare to review their portfolios for the second semestral wave.
“Interest might skew toward sectors set to benefit during the fourth quarter drive, specifically infra- and allied construction-related undertakings, as well as consumer-spending plays,” 2TradeAsia said.
2Trade’s stance is, “position on intra-day lulls and go for stocks with convincing growth stories that will support improved dividends in the long-term.”
Immediate support is seen at 7,750 and resistance at 7,900.