SHARE prices are in for a correction this week as the market had entered a bearish phase after staying neutral, but some buying interest may focus on stocks on the small boards.
“We expect the main index to face more corrective pressure this week, “ said Luis Limlingan, the business development head at Regina Capital Development Corp., in a text message.
“We reiterate last week’s strategy of taking profit until prices stabilize near support points,” he added.
Victor Benavidez, nominee at Alakor Securities Inc., thinks that the small boards could likely benefit this week. “With the entry of the ghost month, which commences on August 3, I think the PSEi is in for a correction. So for next week, it would be the small boards which are expected to actively play,” he said.
Last week, the benchmark Philippines Stock Exchange Index (PSEi), ended with a loss of 62 points or 0.77 percent on Friday, as profit taking set in, falling from its 8, 000-plus level to settle at 7, 963.11.
Limlingan said a possible drop in the benchmark index to the 7, 716-point level should be favorable to the market because “at such point, prices will have already pulled back significantly and the index will be pretty close to its range support, which is historically an area of strong buying pressure.”
The president of Eagle Equity Inc., Joseph Roxas, in a phone interview, said the market is heading for a month of consolidation. “Therefore, in a general way, the market may not move very far… there will be no big moves.”
He sees the market moving “about 100 points up or down” during the week.