Analysts remain bullish on Philippine Stock Exchange trading this week despite the selling pressures as the benchmark index attempts to reach the 7,000 level.
Philstocks Financial Inc. research head Japeth Tantiangco said while the index rallied for four straight weeks, leaving the market susceptible to profit-taking, investors would look for fresh leads and overseas developments for guidance to support their bullish sentiments.
“Without such, we may see profit-taking, which could lead to a pullback for the market,” he said.
Investors will also await the release of more fourth-quarter 2023 earnings reports of listed companies.
China Bank Capital managing director Juan Poalo Colet said he expects selling pressures to emerge this week. “Hotter-than-expected US January producer prices and a potential delay in US policy rate cuts may give investors reasons to take profits,” Colet said.
Increasing market participation and foreign inflow could provide support for the market this week, he said.
“Traders will take their cue mainly from US and China markets for directions,” Colet said.
The local market is seen consolidating within the 6,750 to 6,950 level this week. The PSE Index rose 0.34 percent last week to close at 6,873.23. It has risen by 6.56 percent since the start of the year.
Average daily turnover fell to P4.7 billion last week from the previous P5.8 billion, while net foreign buying also dropped slightly to P2.1 billion from P2.68 billion.