Connect with us

Hi, what are you looking for?

Economy

Shares to move sideways on profit taking, BSP

THE MARKET is expected to trade sideways this week as investors look forward to the start of the government’s coronavirus disease 2019 (COVID-19) vaccination program and following the central bank’s decision to keep interest rates at their current record lows.

The benchmark Philippine Stock Exchange index (PSEi) declined by 91.14 points to close at 6,991.01 on Thursday from its 7,019.18 close on Feb. 5. Financial markets were closed on Friday in observance of Chinese New Year.

The market’s average value turnover went up by 23.97% last week to 12.36 billion.

“The local index closed the week in the red after attempting to head higher through the week. The market’s strength early in the week was likely driven by global investor optimism on renewed recovery and vaccine prospects. However, this strength eventually faded as prices hit resistances, and investors took profits following the gains over the past two weeks,” China Bank Securities Corp. Research Head Rastine Mackie D. Mercado said in an e-mail on Thursday.

“Foreign funds also notably turned weekly net buyers [last] week following several weeks of net foreign selling. It will be important to monitor if this net foreign buying is sustained through the following weeks as this may signal a possible inflection point in foreign fund flows,” Mr. Mercado said.

Meanwhile, Summit Securities president Harry G. Liu said the market’s movement will depend on the economic outlook, which he said would hinge on the government’s COVID-19 inoculation program.

“We’re still trying to develop a reversal on the total market. Basically, I think the important fundamental is [for] the vaccination to be successful in the coming months so that the economy can go back to improvement,” Mr. Liu said by phone on Saturday. “So, I feel for the meantime, the market will still go on in medium- to long-term consolidation,” he added.

Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in an e-mail that the arrival of the first batch of COVID-19 vaccines this month will be a major catalyst for the market.

“For the coming days or weeks, any further measures to reopen the economy would help support better economic recovery prospects as well as investment valuations,” Mr. Ricafort said.

Meanwhile, the result of the Bangko Sentral ng Pilipinas’ (BSP) policy meeting last week might cause investors to pocket their recent gains. The BSP on Thursday kept benchmark interest rates at record lows to support the Philippine economy’s recovery from the coronavirus pandemic.

RCBC’s Mr. Ricafort placed the PSEi’s immediate resistance at the 7,100 level. Meanwhile, China Bank Securities’ Mr. Mercado sees the index moving between 6,900 and 7,130 this week.

“We expect the PSEi to trade sideways in the coming week as investors shift their focus to the government’s vaccine rollout. Moreover, we may see some reactive moves on Monday following the BSP’s policy meeting,” Mr. Mercado added. — K.G. Valmonte

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!

Latest

Economy

The Bank of the Philippines Islands (BPI) secured back-to-back awards from a multitude of notable local and regional awarding entities throughout 2022. These recognitions...

Investing

A glittering night of celebration for the UK’s 140 finalists of the Business Champion Awards. Over 300 guests filled the East Wintergardens in London’s...

Economy

THE PHILIPPINE government should take time to study the transport modernization program and execute it properly rather than rush the whole process, according to...

Economy

Shinagawa Healthcare Solutions Corp. is preparing to open a diagnostic and preventive care center in Bonifacio Global City (BGC) next month, the company’s president...

Economy

The Philippine government is planning to launch a retail dollar bond offering next month, Finance Secretary Benjamin E. Diokno said. “We plan to launch...

Economy

Fisherfolk, farmers, children, and individuals residing in rural areas remained the poorest sectors in 2021, according to the Philippine Statistics Authority (PSA). Preliminary estimates...

You May Also Like

Investing

Browsing history makes referring to sites and pages you’ve visited in the past seamless. It’ll help you recall what page you checked out on...

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

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

Investing

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: SmartRetirementReport.com, 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.