Philippine bourse set to continue climb

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PSe building
Building of the Philippine Stock Exchange in Manila

The Philippine Stock Exchange (PSE), after soaring over the 6,600 mark for the first time on February 21, is reaching towards another record the last week of February. However, while market analysts see the last week of February as being a boon due to month-end window dressing, the bourse is now hovering at overbought levels that leave some leery.

The main-share Philippine Stock Exchange index gained 2.2 per cent to close at 6,665.06 on February 22, while intraday drips in trade were only seen as a fresh opportunity to get into the market. The new high of 6,667.41 set on February 21 was the 20th record breakout of the bourse for 2013.

“Having crossed above the 6,600 zone, all eyes are set on the Philippine Stock Exchange index’s ability to hit its next target, possibly 6,700-6,750,” said Freya Natividad, investment analyst at brokerage firm 2Trade-Asia.com told the Philippine Star.

“The general theme is still reliant on stimulus measures that will help boost growth, especially with the earnings reporting season in the coming weeks,” Natividad said.

Global investor sentiment is very much pinned to the actions of the US Federal Reserve, who has been conducting a bond buying stimulus programme. In week ending February 22, investors begun retreating fearing a loss in liquidity due to a slowdown from the Fed.

The fanfare at the PSE seems bound to find equilibrium sooner than later, despite the high hopes of the profit making as of recent.

“Bear in mind that the market is ripe for a near-term correction. A much larger correction is at play once the 6,400 level has been broken,” Banco de Oro Unibank Chief Strategist Jonathan Ravelas told the Philippine Inquirer.

He added that an unexpected high GDP growth rate of 6.6 per cent and sanguine forecasts for 2012 earnings could keep the market upbeat.

 

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Reading Time: 1 minute

Building of the Philippine Stock Exchange in Manila

The Philippine Stock Exchange (PSE), after soaring over the 6,600 mark for the first time on February 21, is reaching towards another record the last week of February. However, while market analysts see the last week of February as being a boon due to month-end window dressing, the bourse is now hovering at overbought levels that leave some leery.

Reading Time: 1 minute

PSe building
Building of the Philippine Stock Exchange in Manila

The Philippine Stock Exchange (PSE), after soaring over the 6,600 mark for the first time on February 21, is reaching towards another record the last week of February. However, while market analysts see the last week of February as being a boon due to month-end window dressing, the bourse is now hovering at overbought levels that leave some leery.

The main-share Philippine Stock Exchange index gained 2.2 per cent to close at 6,665.06 on February 22, while intraday drips in trade were only seen as a fresh opportunity to get into the market. The new high of 6,667.41 set on February 21 was the 20th record breakout of the bourse for 2013.

“Having crossed above the 6,600 zone, all eyes are set on the Philippine Stock Exchange index’s ability to hit its next target, possibly 6,700-6,750,” said Freya Natividad, investment analyst at brokerage firm 2Trade-Asia.com told the Philippine Star.

“The general theme is still reliant on stimulus measures that will help boost growth, especially with the earnings reporting season in the coming weeks,” Natividad said.

Global investor sentiment is very much pinned to the actions of the US Federal Reserve, who has been conducting a bond buying stimulus programme. In week ending February 22, investors begun retreating fearing a loss in liquidity due to a slowdown from the Fed.

The fanfare at the PSE seems bound to find equilibrium sooner than later, despite the high hopes of the profit making as of recent.

“Bear in mind that the market is ripe for a near-term correction. A much larger correction is at play once the 6,400 level has been broken,” Banco de Oro Unibank Chief Strategist Jonathan Ravelas told the Philippine Inquirer.

He added that an unexpected high GDP growth rate of 6.6 per cent and sanguine forecasts for 2012 earnings could keep the market upbeat.

 

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