Share prices at the Philippine Stock Exchange are expected to continue moving sideways with an upward momentum this week on improved investor sentiments.
Analysts said the 30-company PSE index could test the 7,000 level over the near term given the renewed optimism. Bargain hunting, however, may also take place after the market’s recent run-up.
“There is a clear attempt for the benchmark index to get past the hurdle that is the 7,000-mark, retracing new resistance closer to 7,200, where it was mostly in the first half of 2022,” online brokerage firm 2TradeAsia.com said.
“Near-term fundamentals look supportive of this direction,” it said.
Analysts said investors were still concerned about rising oil prices, commodity shortages and increasing prices of basic commodities. These factors could push inflation rate higher in the coming months, they said.
The Bangko Sentral ng Pilipinas earlier revised its 2022 inflation outlook to 5.4 percent from 4 percent. It also lowered the 2023 inflation rate projection to 4 percent from 4.2 percent.
Analysts advised investors to look at the medium to long term, take advantage of technical correction and focus on stocks that are likely to report positive earnings amid the market conditions.
The bellwether PSEi climbed 2.45 percent last week to close at 6,863.86 on Friday, while the broader all-shares index rose 2 percent to 3,635.57 on strong foreign buying.
Foreign investors were net buyers by P3.2 billion as the average daily turnover reached P8.26 billion.
Top price gainers last week were 2Go Group Inc. which jumped 19.8 percent to P7.55; Philex Mining Corp., 10.6 percent to P3.54; and BDO Unibank Inc., 9.2 percent to P129.30.
Heavy losers included ABS-CBN Corp., which declined 10.8 percent to P11.88; Filinvest REIT Corp., 4.3 percent to P6.22; and PLDT Inc., 3.7 percent to P1,750.