Profit-taking expected to halt stocks’ rally
The local bourse may succumb to profit-taking this week after posting a strong five-session winning streak previously amid cooling inflation and positive corporate earnings results.
Rastine Mercado, research director at China Bank Securities, said in an email investors may try to book gains at the beginning of the week, with the Philippine Stock Exchange Index (PSEi) possibly dipping to the 6,150 level.
“Ideally, we’d like to see prices taking pause right below the resistance [at 6,300],” Mercado said.
At the same time, he noted that reactive moves may be anticipated following the release of jobs data in the United States.
Last week, the PSEi gained for five straight days and ended higher by 5 percent to close at 6,298.29.
This was mostly due to cooler February inflation and robust 2024 corporate earnings results, said Japhet Tantiangco, research head at Philstocks Financial Inc.
Despite the expected profit-taking, Tantiangco said the index may be able to hold its ground as the market holds on to projections of further monetary easing from the Bangko Sentral ng Pilipinas.
He added investors may likewise look toward foreign direct investment and remittance data for an additional push.
“A key downside risk to the market, however, is the uncertainties with respect to the US’ trade policies,” Tantiangco said.
He sees the market’s major support at 6,000 and resistance at 6,400.
