Analysts expect stock trading to be muted during the shortened trading week, ahead of the Lent observance in the country. Financial markets will be closed Thursday and Friday.
BDO Unibank Inc. chief investment strategist Jonathan Ravelas said the market’s strong performance over recent trading weeks would likely encourage a further test of the 7,350 to 7,370-point level in the near term.
“However, expect some profit taking to occur given next week is a short trading week,” Ravelas said.
Regina Capital Development Corp. managing director Luis Limlingan said the market was ripe for technical correction after the index rose above 7,300 points last week.
“With volatility reading at 100 point market, expect wider intraday swans which we see as a trigger to start taking profits already. More aggressive traders may choose to hold but we advise putting tight triggers to protect gains,” Limlingan said.
The bellwether Philippine Stock Exchange index climbed 2.9 percent last week to close at 7.306.74 on Friday, as global investors took more risk. At the same time, the Fed’s decision to keep its rate unchanged also boosted the global equities markets.
Except for industrial and mining and oil, which lost 0.8 percent and 0.5 percent, respectively, all other major sub-indices were in the green led by services, which climbed 10.1 percent, holding firms which advanced 2.6 percent, property which increased 2.5 percent and financials, which rose 2.4 percent.
Foreign investors were net buyers last week by P4.34 billion, as total foreign buying hit P24.6 billion while foreign selling amounted to P20.2 billion.
The strong inflow of foreign investments boosted blue-chip companies such as Globe Telecom Inc., which rose 23.7 percent to P2,190; Philippine Long Distance Telephone Co., which jumped 16.1 percent to P1,978; and SM Investments Corp., which rose 6.5 percent to P990.
Liberty Telecoms Holdings Inc. emerged as the heaviest loser after Telstra of Australia ended joint venture talks with San Miguel Corp. Liberty Telecom fell 13.7 percent to P3.70.