Since no specific fresh leads are being an ticipated, local stocks may consolidate further the same way it has been doing in the past few weeks only this time, with a downward bias.
Elizabeth Abadillo, Angpin and Associates Securities Inc. analyst, said in a text message that as of the moment, the market is not expecting any “fresh news” to direct it through the whole week.
“PSE [Philippine Stock Exchange] continues to be in consolidation with downward bias with support at 5,500 to 5,700 [points]or 6,000 [points]and resistances at 6,200 to 6,400 [points],” DA Market Securities Inc. analyst Nisha Alicer said.
“Amid positive fiscal year 2013 or first-quarter 2014 earnings and management issuances of earnings guidance, strategy and growth plans, momentum could bring us to testing initial 6,200-resistance. Now, if broken, it can bring us to the critical 6,400 [-point level],” she added.
According to her, investors are currently realizing more value in beaten down stocks.
Abadillo said that if the volume or value for this week does not change, the trend will still look the same as last week.
On Friday, the Philippine Stock Exchange index (PSEi) recovered easily from a one-day correction, climbing slightly by 0.20 percent, or 11.94 points to 6,113.66, while the wider all-shares index rebounded by 0.19 percent, or 6.87 points to end at 3,705.56.
Alicer said that even though the PSEi only had a modest gain on Friday’s trade, the index still managed to went up 1.7 percent week-on-week, adding that the recent uptrend after testing 5,900 points indicates buying demand at support levels.
On Thursday last week, the benchmark index didn’t manage to prolong its run up and ended on the red side for the first time in six days.
The PSEi snapped out of its winning streak after falling by 0.17 percent, or 10.59 points to 6,101.72, while the broader all-shares index went down by 0.12 percent, or 4.41 points to 3,698.69.