Philippine share prices are anticipated to continue rising this week on local investors’ optimism, although some institutional investors are still cautious about the next administration’s final list of appointees, analysts said.
Victor Felix, equity research analyst at AB Capital Securities Inc., said that despite last week’s P600 million in net foreign selling, the index managed to gain around 100 points.
“This suggests that local investors are bullish and continue to prop up the market,” Felix said.
Last week, the benchmark Philippine Stock Exchange Index (PSEi) gained 1.54 percent or 113 points higher to close the week at 7,411, with growth mainly enjoyed by the property firms, gaining 5 percent week-on-week.
Conversely, profit taking was mostly experienced in the mining and oil sector shedding 2.4 percent on higher oil prices which reached as high as $50 a barrel, its highest level this year and in more than seven months.
Average value turn over weakened by 17 percent at P7.1 billion, with net foreign buying selling at almost P600 million.
The research team at 2TradeAsia.com said that most stock market investors are “cautiously optimistic” this week, with the incoming administration preparing its cabinet line-up.
“Institutional funds are waiting for the final economic blueprint as a reference whether earlier initiatives from the outgoing administration will be upheld or improved,” 2TradeAsia.com said.
Felix said that for the week, a bullish continuation toward the 7,600-point level is anticipated, which is AB Capital’s target level for the month of June.
“We weigh a strong possibility for the PSEi to rally based on the rebound met at the previous primary 7,300 support area from last week,” Felix said.
Felix said that the trading range for the week would likely be between 7,300 and 7,550.