Philippine shares may continue to move sideways this week in the absence of fresh catalysts after surging to the 6,800-point level last week.
Astro del Castillo, First Grade Finance Inc. managing director, said the market may consolidate further during the week as the corporate earnings season comes to an end.
“The market may succumb to profit-taking more given that corporate earnings season is done,” he said.
Over the past two weeks or so, analysts had been pointing to corporate earnings as one of the major drivers of the market.
“We already broke the 6,800-psychological level, this means we’re surging and we should take a pause,” Del Castillo said.
Freya Natividad, analyst at Papa Securities, Corp., said the local market will move in “tight trading” with support seen at 6,750 to 6,800 points while resistance is seen at 6,900.
Philippine shares wrapped trading last week with a two-day correction as investors opted to take profit after several days of a run-up.
On Friday, the Philippine Stock Exchange index (PSEi) lost 31.62 points or 0.46 percent to 6,817.71, while the wider all shares fell 26.72 points or 0.65 percent to 4,086.08.
On Thursday, geopolitical jitters overseas tempered buying interest in local shares. Fresh from a year-to-date high, the PSEi shed 31.11 points or 0.45 percent to 6,849.33, with the wider all shares also ending in red, down 21.95 points or 0.53 percent at 4,112.80.
Foreign buying sent the benchmark index to a 12-month high on Wednesday amid continuing euphoria over the country’s surprise credit rating upgrade and Wall Street’s record gains. The main index closed up 0.40 percent at 6,880.44, its best finish since May 31 last year when it hit 7,021.95, while the wider all shares was flat, dipping 0.03 percent to 4,134.75.