By Madelaine B. Miraflor
After going up almost non-stop in the past few days, the market is expected to take a healthy breather any time soon and investors are advised to position on lows.
Online brokerage 2TradeAsia.com said that having risen by 3 percent from the end-December’s 8,558 to 8,813, “brief pauses” would be healthy to support the benchmark index’s ascent to the initial 9,400 mark towards the 10,100 target.
It also said that as large fund managers are now on comparison mode among houses’ outlook, portfolio repositioning can also be expected
“For now, attention is largely on the implementing rules and regulation (IRR) for the first leg of the tax reform program, and merits will be assessed on its rollout plus achievement of the Finance bureau’s estimated numbers,” 2TradeAsia.com said.
Moving forward, 2TradeAsia said that valuations should already take on a wider perspective, transcending beyond traditional price-to-earnings multiple.
“More and more players are taking on a different angle in viewing specific stocks earnings growth story, in view of sustainability of future dividend yields and capital appreciation target. Challenges besetting a specific industry are being seen as temporary, and investors are willing to catch on buying opportunities in a typical adjustment cycle,” the brokerage said.
“The mart seems poised for its second up-wave, mimicking its end-December to early-January performance. Excitement should eventually taper-off thereafter, and support range-trading or base-building for the next ascent. Position gradually on lows,” it added.
After reaching 8,923 level, the Philippine Stock Exchange index (PSEi) finished a full five-day trading week on a positive note, adding 44 points, or 0.51 percent week on week to close at 8,813.
Marita Limlingan, president of Regina Capital Development Corp., said the Philippine markets settled flat after a see-saw week as investors begin to re-calibrate their portfolios.
For this week, immediate support is pegged at 8,770 to 8,800, while resistance is at 8,850 to 8,870.