In the absence of major market-moving news, the local bourse is seen consolidating further this week after hitting the 6,600-point resistance level last week largely on external factors.
“The market may consolidate further in the 6,500 or 6,400-level amid the shortened trading week. And of course, this is also after hitting the 6,600-level,” Astro del Castillo, First Grade Finance managing director, said in a phone interview.
The market will be closed on Wednesday for the celebration of the Day of Valor or Araw ng Kagitingan.
However, another analyst said the market may trade sideways with an upward bias in the latter part of the week.
“After a few days of profit-taking, the market should show some rebound continuations— estimate towards midweek of next week,” Juanis Barredo, vice president at COL Financial, said in a text message.
Barredo noted that after four to five days of gains, the market last week succumbed to profit-taking pressure, losing 25 points week on week. “Regional markets were lower too, similarly on profit-taking,” Barredo added.
For his part, BPI Securities Corp. chief executive Michael Angelo Oyson said investors who missed the rally should be on the lookout for buying opportunities given that any potential pullback could only be short-lived.
“We are in the middle of an economic super-cycle,” Oyson said.
On Wednesday last week, Philippine shares hit 6,600 for the first time in five months amid optimism brought about by positive US manufacturing data, with the index eventually settling above the 6,500 level at the close.
However, profit-taking set in on Thursday, capping the market’s four-day rally.
The bourse also closed lower on Friday as investors quickly booked profits after the index hit an intraday high of 6,626.01.