The country’s equities market will continue to be “bullish” despite slightly dipping on Monday, as it was influenced by the weakening of Indian rupee and Thai baht over the weekend.
BPI Securities Corp. Director Richard Anthony Liboro told The Manila Times that the cause of downward trend in Monday’s trade was the weakening of the two currencies, which was mostly attributed to political reasons.
He also said that besides the weakening of foreign markets’ currencies, the decline was also caused by “a little profit-taking,” because trading was optimistic last week.
“[Despite downward market movement,] we’re still bullish. The Philippines’ macroeconomic fundamentals are still intact . . . because of [good]economic numbers, then the market should follow. We see the market going to 7,000 [points]by yearend,” Liboro said.
For his part, Harry Liu, Summit Securities president, said in a phone interview that local stocks will continue its “sideways [movement]throughout November,” and will go up eventually by December.
“We’ll be moving sideways this November. Support is at 6,500 [points], and resistance is at 6,650 [points]. The market will end better in December than in November,” he said.
“If the market will break the 6,650 [points]resistance [in November], then we can look at 6,800 [points]as the next levels of target for the end of the year. Support should not be down by 6,500 [points]to 6,300 [points]. . . This week, everything will hang on the IPO [initial public offering]listing of Travellers [International Hotel Group], and soon for Robinsons [Retail Holdings Inc.],” Liu added.
Liboro and Liu agreed that investors should “buy on dips” as Philippine equities remain sound, given that there will be no crisis intervening until the yearend.
On Monday, the Philippine Stock Exchange index (PSEi) opened the week with a 0.64-percent decline, or 41.99 points to 6,543.39. Meanwhile, the wider all-shares index went down by 0.54 percent, or 21.31 points to 3,955.81.
All other indices decreased except for properties, which registered an increase of 0.38 percent, or 9.94 points to 2,664.45. On the other hand, financials made the biggest drop for the trading session with a 0.95-percent slump, or 15.39 points to 1,602.87.
Industrial went down by 0.33 percent, or 31.19 points to 9,348.92, while holding firms skid by 0.82 percent, or 49.21 points to 5,934.05.
Mining and oil index dipped by 0.44 percent, or 56.48 points to 12,767.81, while services slid by 0.81 percent, or 16.30 points to 1,987.90.
“But looking at the overall picture, as long as there are no crises, [equities]are moving sideways. But be watchful for the support level not be lower by 6,300 [points],” Liu said.
On Friday, the PSEi slid by 0.18 percent, or 11.83 points to 6,585.38, while the broader all-shares index slipped only by 0.01 percent, or 0.31 points to end at 3,977.12.