Traders turn cautious as market winds down for long holiday
Investors are advised to exercise caution this week after the benchmark index registered new record highs in the last two sessions. Also, trading will be cut short as the nation observes the Holy Week.
The Philippine Stock Exchange index, or PSEi, closed last week at a fresh record of 7,877.96 after the Bangko Sentral ng Pilipinas decided to keep key interest rates steady, apart from easing its inflation outlook.
The market was also kept busy last week with a string of 2014 earnings results. Cebu Pacific, San Miguel Corp., SSI Group, Xurpas Inc. and Robinson Retail all reported better 2014 figures.
The PSEi also breached resistance barriers in terms of technical indicators, stock brokerage AB Capital Securities Inc. said in its weekly outlook report.
Specifically, the PSEi rising above the resistance level of 7,862 means that the index has room to move higher to 7,900. That level would represent a 9.26 percent gain for the PSEi since the start of the year.
AB Capital placed immediate support levels at 7,800 to 7,860 for the rest of the week. The PSEi is expected to trade between 7,700 to 7,900 in the next few days, it added.
The brokerage said in its report that investors would likewise be looking for direction aboard, particularly from United States Federal Reserve chair Janet Yellen.
Her talk on monetary policy may prompt traders and investors to “once again try to interpret hints on the timing” of US rate hikes.
“Hence, investors are advised to remain cautious [this week] … as hints of an earlier rate hike may cause stock prices to retreat,” AB Capital reported.
Astro del Castillo, First Grade Finance Inc. managing director, said in a separate interview last week that fund managers would likely stay on the sidelines and avoid making big bets because of the lenten holiday this week.
There will be no trading on Thursday (April 2) and Friday (April 3). Miguel R. Camus
