URL: http://money.inq7.net/topstories/view_topstories.php?yyyy=2006&mon=02&dd=13&file=8
MARKETPLAY
Stocks to consolidate
Posted: 2:38 AM | Feb. 13, 2006
Inquirer
(Published on Page B1 of the February 13, 2006 issue of the Philippine Daily Inquirer)
CONFLICTING signals sent by the world's two most influential credit-rating firms may prompt the local stock market to consolidate this week as investors wait for clearer signals from other credit watchers.
"Investors might seek indications if another international rating agency (possibly FitchRatings) can break the impasse between S&P and Moody's ratings on the Philippines, while waiting for other justifications that could lift barometers higher this week," online broker 2TradeAsia.com said in a briefing note to its clients.
The brokerage firm advised its clients to "buy on dips and hold" with the Philippine Stock Exchange index likely to find support at the 2,060-2,070 level and resistance at 2,100-2,130.
Last week, the Phisix fell 2.5 percent or a total of 53 points to 2,085.28 prompted by a massive sell-off in market heavyweight PLDT.
The sell-off came after US-based investment bank Morgan Stanley downgraded PLDT's stock on fears of weaker earnings prospects in the face of rising competition.
PLDT touched a low of P1,675 a share after hitting a high only the previous week, although the stock managed to stabilize at P1,750 last Friday.
Nonetheless, last week's weakness in the stock market may be a prelude to a further push upward.
"We are inclined to view the recent weakness as part of a much-awaited technical breather, following the market's rise early this year," 2TradeAsia.com said. "Any lull or weakness should be taken in a positive light, as these provide windows to position in stocks expected to ride with improved economic growth outlook for 2006."
Daxim L. Lucas
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