Investors are likely to cash in for profits after the Philippine stock market posted a record high last week as the volume of trading hit the P6 billion mark.
BPI Securities noted that trading on Friday closed to its highest level as the growing numbers in fundamental and persistent positive bias on economic outlook continued to dominate the local market.
The market advanced 97 points on Friday led by the property and financial sectors. Net foreign buying eased down to P684 million.
Week on week the bourse gained 168 points, up 4.3%. The market is expecting to test the 4,000 level though profit taking along the way is inevitable, says BPI.
The most active stocks were PLDT, Metrobank, Banco de Oro, AGI, EDC, Ayala Corp., SM Prime Holding and AP.
The Asian markets also rallied on optimism that world economy will continue to grow.
Analyst Arlysa Narciso of AB Capital Securites noted that a strong rally last week despite the lack of convincing factors to back up such move.
“Although positive economic news were abound, there was nothing new and exciting about it. The advance was undoubtedly due to foreign leads and the gains garnered by a few companies,” says Narciso.
“So far, all indicators are optimistic and pointing to an advance. The support is at 3,550 or the lower band of the PSEi’s channel line while a probable resistance is at 3,870.”
Narciso said that investors feasted on developments overseas and tracked the gains in Wall Street.
The local market recorded successive gains to end the week with 176 points from its previous level. It reached a new year to date high with its sharp advance last week. Daily volume average reached 1.38 billion with an average value of P5.11 billion.
Aside from the economic forecasts provided by the government, other rating agencies and organizations have likewise given their projected growth of the economy, says Narciso.
“The strong growth recorded in the previous quarter called for a review in forecasts. This fuelled the optimism of investors and confidence in the economy. Other than such news, there was nothing else significant to catch investors’ attention. This led them to seek leads in foreign developments,” Narciso added.