WEEKLY SHARES OUTLOOK

Strong temptation for profit-taking after 400-pt gain

0

IN LIGHT of the more than 400-point surge in the first trading week of 2017, Philippines shares are expected to trade on a positive note with pockets of profit-taking.

Advertisements

Ralph Christian Bodollo, equity research analyst at RCBC Securities Inc., said the benchmark PSEi may go through some dips this week as investors lock in profit.

“With last week’s steep ascent, trading this week may open with profit-taking. If that happens, the 6,900 and 7,100 levels could offer a buying window.”

Harry Liu, president of Summit Securities Inc., said he sees foreign funds coming back on the strength of the country’s macroeconomic fundamentals and the prospects for the Duterte administration’s policies to succeed, as well as the likelihood a windfall from the US economy with President-elect Donald Trump at the helm. Nevertheless, Liu is also seeing an opportunity for profit-takers this week.

Online brokerage 2TradeAsia.com noted the PSEi is likely leaning on an uptrend in the first three months of the year, given the “less political noise” on the domestic front and the real impact of the 0.25-percent interest rake hike by the Federal Reserve already factored in by investors.

“This year will showcase another battle between bears and bulls, but with less political noise in the backdrop. Our fundamentals have always been intact, which can provide returns to market players and investors alike,” 2TradeAsia said in a market note.

2TradeAsia said investors are advised to “stay selective by balancing defensive stocks, while keeping an eye on good winners this year.” It cited the PSEi’s immediate support at 7,150 and resistance at 7,300.

The PSEi soared to 7,248.20 at the close of the four-day trading last week, up 0.54 percent or 38.76 points. It closed at 6,840.64 on December 29, the last trading day of 2016. The All Shares index which tracks the broader market climbed by 0.39 percent or 17.03 points to 4,353.80 on Friday.

Share.
loading...
Loading...

Please follow our commenting guidelines.

Comments are closed.