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Philippine stocks seen testing new highs
Publication Date : 21-01-2013
Local stocks are seen attempting to climb new heights this week after the main index broke past 5,100 last week but many issues are becoming more vulnerable to profit-taking.
Last week, the main-share Philippine Stock Exchange index gained 1.44 per cent to close at a new record high of 6,139.21. A new intraday peak of 6,150.62 was also established.
Banco de Oro Unibank chief strategist Jonathan Ravelas said the stock market was buoyed by strong investor sentiment that, in turn, was supported by strong macroeconomic fundamentals. “Local investors are discounting the market valuations and just focusing on the growth story of the country,” he said.
At current levels, Ravelas said the market still had some momentum to try 6,200-6,300 in the near term. “However, bear in mind that the market is already in an overbought state. Failure of the market to try these levels could call for further losses toward the 5,800-5,850 levels,” he said.