Connect with us

Hi, what are you looking for?


PHL shares likely to correct after last week’s rally

By Denise A. Valdez, Senior Reporter

PHILIPPINE SHARES are expected to see tempered gains this week after extended optimism in the past few days on the back of news on several coronavirus disease 2019 (COVID-19) vaccine candidates.

The benchmark Philippine Stock Exchange index (PSEi) jumped 172.17 points or 2.46% to end Friday’s session at 7,169.79. This marked the PSEi’s best finish since Feb. 24 when it closed at 7,187.44.

On a weekly basis, the index was also higher by 199.91 points or 2.87%.

However, value turnover slowed 30% to an average of P10.4 billion. Foreign investors also posted an average net selling of P596.24 million, which reversed the prior week’s average net inflows of P799.12 million.

“Local shares rallied on news of successful COVID-19 vaccine trials, shrugging off early-week weakness brought about by the devastation of Typhoon Ulysses,” online brokerage said.

“This week, we may see a pullback as investors book gains out of the market’s three-week rally. The local bourse may also test its initial support, which is its 10-day exponential moving average currently at 6,922.88,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco added.

The PSEi has been flirting with the 7,000 level since Nov. 10, when news on the success of Pfizer, Inc. and BioNTech SE’s COVID-19 first came out. Market optimism was sustained until the past week, when Moderna, Inc. reported similarly positive results on its vaccine.

To keep the flame alive, said there will be two key elements that investors will look at: news on the logistical aspect of distributing the vaccines and follow-through efforts to ensure herd immunity.

“Any concerted program at the national level and plans will be appreciated by the market, and will be crucial in turning valuations higher,” the brokerage said.

It noted that “the tide is turning quickly,” recalling that six months ago, it seemed too ambitious to hope for a vaccine soon and a return of the PSEi to the 7,000 level.

“[W]hile some correction is due, it’s not bound to cut as deep,” said.

Aside from the vaccine watch, investors will be looking at upcoming economic figures, such as the October budget balance report and latest bank lending and money supply data.

“Primary downside risk seen for this week is a surge in COVID-19 cases here and/or offshore as this is still considered as the main impediment to economic recovery,” Mr. Tantiangco said.

Philstocks put the PSEi’s support within 6,922.88 to 6,600. put support at 7,000 and resistance between 7,200 and 7,300.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



GROSS BORROWINGS by the National Government had reached P2.75 trillion as of end-October as it continued to raise money for its pandemic response, preliminary...


By Luz Wendy T. Noble, Reporter THE PHILIPPINE Statistics Authority (PSA) said the base year for the consumer price index (CPI) will change to...


SOME INDIAN COMPANIES, including those from the pharmaceutical industry, are interested in investing in economic zones in the Philippines, according to an India Business...


By Keren Concepcion G. Valmonte, Reporter HOSPITALITY GROUPS expect a rebound in tourism as coronavirus disease 2019 (COVID-19) vaccination rates continue to improve and...


BUSINESSWORLD’s Luz Wendy T. Noble was recognized as the Best Reporter of the Year for Banking at the 30th annual awards of the Economic...


THE Securities and Exchange Commission (SEC) has flagged eight more entities in separate advisories for their unregistered investment solicitation programs. These offerings are PH...

You May Also Like


Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...


Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...


As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...


Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer:, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.