After a wave of selling last week, the market is due for rebound as investors would buy back on select blue chips.
“We could see the market make a technical rebound that could get a helping hand if the anxieties in Libya die down, says AB Capital Securities.
“Sentiments should improve once the worries of a long drawn Libyan civil war will not materialize as Libyan leader Muammar Qaddafi’s hold on power is growing weaker by the day.”
“Major oil producing countries are also downplaying the Libyan situation as they have pledged to provide more oil to the markets if there will be a reduction in oil prices,” says AB Capital. Local investors would get guidance from companies regarding their 2010 performances and their outlook for this year.
Among those scheduled to release their results this week are Aboitiz Equity Ventures (AEV), Aboitiz Power Corporation (AP), the Manila Electric Company (MER) and Metro Pacific Investments Corp. (MPI). AB Capital expects the market, which overcame last week’s strong down ward momentum pressure, was able to maintain certain major support levels last week.
“The first important support that the PSEI has managed to stay above of is its recent low of around 3,720. The local main index’s next major support is at its one year exponential moving average line, which is currently priced at 3,680.”
BPI Securities noted the PSEi managed to end its five-day losing streak closing at 3,737.04, up 6.2 points as investors took their cue from the oversold level of the index to bargain hunt.
The market is likely to consolidate in the near term, trading between 3,680 – 3,750, with support pegged at 3,700. PRC and ALI are reported to have joint plans of redeveloping the 21-hectare Sta. Ana horse racetrack located at the residential area along the borders of Makati and Manila.