Stocks are expected to move sideways this week, with the benchmark index likely to set a new record, as positive sentiments could persist, despite possible technical correction and profit-taking.
Accord Capital Equities Corp. trader Justino Calaycay said in a market commentary that while a correction was bound to happen, bullish investor sentiments managed to prevail.
“The bears have found an audience but the bulls have managed to shoot down most of the arguments. Yet even as the market has, in the recent weeks, eked out fresh all-time records in a sudden surge to and briefly past the 8,000-mark— at one point crossing over the 8100-level to an all-time intra-day record high of 8136.97—-the sources of ‘fear’ have not been invalidated. In fact, it could’ve even more strengthened,” he Calaycay said.
BPI Asset Management said in its weekly analysis foreign fund flows were expected to continue to push up the index to record levels.
“Externally, US inflation and industrial manufacturing data are expected to come out. Any disappointment on these data will further speculations of a delayed lift-off; hence, will keep strong foreign flows,” BPI Asset Management said.
On the local front, investors are likely to wait for the release of workers’ remittances for the month of February, which could influence the market to rally if data remain positive.
The bellwether Philippine Stock Exchange index last week gained 1.7 percent to hit its 28th all-time high of 8,127.48, while the broader all-share index jumped 1.3 percent to 4,635.68.
Services emerged as the top performer among the sub-indices, gaining 3.7 percent, followed by holdings companies which rose 2.3 percent, and property and financial sectors, which added 1.9 percent and 0.6 percent, respectively.
The industrial sub-index dropped 1.3 percent, while mining and oil dipped 0.4 percent.
Foreign investors were net buyers by P422.5 million last week, when the average daily value turnover stood at P9.03 billion.
Top gainers last week were Chemical Industries of the Philippines, which surged 100 percent to P200; Imperial Resources “B” shares which climbed 50 percent to P24; and Makati Finance Corp., which increased 49.8 percent to P5.44.