Pullbacks expected in stocks this week
Last week, the PSEi closed at 8,420.95, down 0.32 percent for the week. File
MANILA, Philippines — The local stock market barometer is expected to pause for more pullbacks this week after last week’s performance, said Chris Mangun, head of research at Eagle Equities.
“We got as high as 8,586.73 on Tuesday, but saw the market come back and fill the gaps. We ended the week above the 8,400 support level. I still see the market trading between 8,200 and 8,500,” Mangun said.
Last week, the PSEi closed at 8,420.95, down 0.32 percent for the week.
“This is the slight pullback which we have been expecting due to the huge gains in a short period of time. I am expecting the market to show some more pullbacks in the following weeks,” he said.
2TradeAsia agreed that the market may pause for a breather this week.
“After breaching to as much as 8,586 during the week, it is normal to see our gauge pause for breathers to sustain an ascent. This is warranted to allow the PSEi to establish firmer ascending channels. Some players might seize on intra-day strength to pocket gains, especially those inclined to react on the US interest rate hike prospect, or other geopolitical events,” it said.
Meanwhile, it said local monetary authorities’ consideration to reduce banks’ reserve requirement would aid in lending operations, freeing up cash that can be productively utilized in the system.
2TradeAsia said movements within the 8,400 to 8,500 level should help fortify a new base for the bourse as fund managers express keen interest on the momentum build-up of government’s infrastructure projects.
- Latest
- Trending
