The local stock market is projected to have a downward bias this week, as investors will likely take their profits following last week’s advances.
Last week’s gains were attributed to mostly good news from outside the country, with the US Federal Reserve Chairman Janet Yellen’s pronouncement that the central bank will continue tapering its bond buying programing having the most impact on investors.
The month of February also showed foreign buyers were interested in emerging markets like the Philippines and Indonesia, which saw net foreign inflows tripling to $614 million in February from $197 million in the previous month.
“This implies that foreign investors are beginning to turn positive in terms of sentiment towards select emerging market assets, including the Philippines,” the BPI said in a research note.
“The index breached the 200-day moving average last week so the next resistance is seen at the previous high last October 2013 of 6,600 [points]. Trading range will be from 6,350 to 6,550 [points],” it added.
Though starting last week with a two-day decline, the Philippine Stock Exchange index closed Friday with a 1.1-percent ascent, or 70.20 points higher at 6,424.99, ending the week on a positive note. The wider all-shares index was also up 0.89 percent, or 34.26 points, at 3,866.