PSEi correction seen following record highs


    Profit-taking could weigh on the stock market, which analysts say is due for a correction following a run of record highs.

    “Definitely, in the short to medium term on overbought levels, we will have a correction,” Summit Securities, Inc. President Harry Liu said.

    “We’re seeing support now at 8,150 and resistance at 8,300,” he added.

    The benchmark Philippine Stock Exchange index (PSEi) rose 0.54 percent or 45.13 points to finish at 8,447.94 on Friday, a new all-time high.

    The wider All Shares also grew 0.20 percent or 9.83 points to close at 4,938.11.

    Factors that could influence trading include the Senate’s failure to pass its version of the proposed Tax Reform for Acceleration and Inclusion (Train) Act last week.

    With Congress now on a month-long break, legislators will have to rush to have the bill — whose revenues will be used to fund the government’s massive infrastructure program — passed before the end of the year.

    Online brokerage firm 2TradeAsia said investors could be looking at capital expenditures of companies planning to participate in the Duterte administration’s ‘Build Build Build’ program.

    “With P1.77 trillion covering 70 infra projects (as of September 2017) already in the pipeline, 37 percent … already in implementation phase, [and]the rest are in the works … such aggressiveness would likely be met by optimism, building expectations of market premium over their share price,” 2TradeAsia said.

    “Offerings of infra-based funds and/or joint initiatives are among key markers for 2018, especially once final approval on fiscal budget has already been put in place,” it noted.

    “Meanwhile, investors are also being accommodative of other new metrics applicable per industry, especially once mergers and acquisitions stories are taken into picture.”


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