The PSEi last week reached the 9,000-point level for the first time on overall positive outlook on the domestic economy, but investors are expecting a possible pullback in the stock market over the near-term period on concerns about high valuations.
Analysts said a technical correction could also provide the market a much-needed breather before making another run-up toward the 9,300 to 9,500 level.
F.Yap Securities said the market had been building a potential bar to support the market’s long trend trend.
“Breathers should be regarded as opportunities to position gradually on stock slated to perform this year,” F.Yap Securities said.
The country’s benchmark index is at 19.6 times its estimated 12-month forward earnings, the most expensive in Asia Pacific after Vietnam, and near the multiples reached before corrections in 2015 and 2016.
The PSEi last week rose to an all-time high of 9,041.20, while the All Shares Index advanced 2.3 percent to 5,269.32.
It marked its eighth straight weekly gain, the longest winning streak since February 2015, driven by expectations of faster economic and earnings growth.
“We are hopeful that the market’s level will be sustained on the back of solid macroeconomic fundamentals and on expectations of upbeat corporate earnings from our listed companies. Our market is likewise in sync with regional bourses that have reached record highs this month,” Philippine Stock Exchange president Ramon Monzon said.
Except for the financials which declined 1.4 percent, all other subindices ended in the green led by services, which increased 3.5 percent, followed by holding firms which rose 2.3 percent and property which gained 2.3 percent.
Foreign investors were net buyers for the week by P543.2 million, while the average daily value traded stood at P8.3 billion.
Weekly top price gainers were stocks owned by former senator Manuel Villa, including Golden Haven Inc., which surged 354 percent to P99 per share and Starmalls Inc., which climbed 107.5 percent to P19.30. Share price of Bloomberry Resorts Corp. advanced 19.4 percent to P12.80.
Weekly top price losers East West Banking Corp., which declined 6.1 percent to P29.10; Shakey’s Pizza Asia Ventures Inc., which dipped 5.7 percent to P14.80; and Bank of the Philippine Islands which dropped 4.6 percent to P117.80.
Wall Street stocks, meanwhile, were in full-throttle rally mode Friday, with all three major indices surging to records following strong earnings reports from Intel and other companies.
The Dow Jones Industrial Average rose 0.9 percent to finish the week at 26,616.71, its third straight record. With AFP