PHILIPPINE shares are expected to rally this week and test resistance at 8,200 points on the benchmark PSEi as more corporate results are set to come in.
After going beyond the 8,000 mark, “the likelihood of the rally’s continuity will be tested … A fresh batch of corporate earnings is slated to be released this week, with radars set on the banking, property and power sectors,” online brokerage firm 2TradeAsia said in a market note over the weekend.
“Select index-based issues within these categories might serve as a lead in the market’s overall first-half earnings expectations,” it added.
Investors are seen likely to keep an eye on the second-quarter results of index movers BDO Unibank Inc., AboitizPower Corp., Aboitiz Equity Ventures, Manila Electric Company, and Metro Pacific Investments Corp.
Cathrina Cerdenia, sales and business development associate at F. Yap Securities Inc., said earlier the market would be waiting for the “low hanging fruits” of government projects which have generated so much excitement under the Build, Build, Build program of the Duterte administration… “But in terms of actual results, there is none yet and it’s already the third quarter. Also, we’re in the earnings season so that would depend on the performance of the corporations themselves if they’re good,” Cerdenia said on Friday.
Regina Capital Development Corp. sees no strong indicator that would drive prices back to the 8,000 level at this point.
“Hence, the index is seen moving sideways while trading above its strong support at 7,888,” it said.
A raft of local economic data, such as the Purchasing Managers’ Index and the Consumer Price Index, may provide guidance, it added.
On the global front, the market is expected to draw leads from the US.