The forthcoming initial public offerings (IPOs) in the Philippine Stock Exchange may give enough fuel for the market to go higher amid the absence of other significant leads.
“With very little to chew on from the domestic front, local investors will continue to look overseas for guidance. However, oncoming IPO’s—at least three in the next month—may sap liquidity in the market ahead of the bulk of the earnings reports,” Jun Calaycay, Accord Capital Equities Corp. analyst, said.
According to him, a little attention may be paid to the rumor mills, particularly on take-over or backdoor speculations.
In online brokerage 2Trade
Asia.com’s weekly outlook, it was mentioned that limited trading bands are seen as market players assess nine-month 2013 corporate earnings, including validation of capital expenditures rollout for the fourth quarter toward the first quarter of 2014.
“Nevertheless, this lull would be ripe to gradually build-up on equities, especially toward 2014,” the brokerage firm said.
“Some might be expectant of new listings slated for the coming weeks, apart from corporate note issuances. Immediate support is 6,500 [points], resistance 6,600 to 6,630,” it added.
Trading in the stock market remained shut on Monday as voters headed to the precincts to elect barangay (village) leaders. The three-session week begins today before taking another break on Friday in observance of All Saints’ Day.
Last week, Philippines shares slipped by -1 percent, pulling the Philippine Stock Exchange index (PSEi) back within what appears to be a developing 5-percent to 6-percent trading band and below the 6,600-point line.
“The bear’s ‘head-and-shoulders’ argument remain valid yet unconfirmed as the bulls put up a fight, banking on the macro and individual firm fundamentals for support and justification,” Calaycay said.
On a positive note, he noted that that series of “lower highs and lower lows” was briefly broken, meek and weak though it may seem, when the PSEi rose and closed at 6635.11, beating an immediately preceding top at 6511.70.
In Friday’s trades, the 6,500-point support was successfully tested with the index checking the decline at 6505.20 before eventually closing the session at 6539.81.