Technical rebound seen

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Posted: 9:22 PM | May 28, 2006

Inquirer

Published on page B1 of the May 29, 2006 issue of the Philippine Daily Inquirer

SHARE PRICES ARE EXPECTED to rebound this week after getting pummeled the past weeks due to interest rate jitters.

"However, the upside may be limited as some fund managers are still in a profit-taking mode. It will be a technical rebound within a correction of a long-term uptrend," AB Capital Securities said.

The PSEi lost 55.36 points or 2.36 percent to 2,300.39 last week.

AB Capital Securities said in its weekly note to clients that global markets continued to roll from the interest rate punches dealt in the United States, knocking down the PSEi back to the 2,240 level within the week before recovering last Friday near the 2,300 mark.

This was the third straight week that the local market was beaten up, bringing stock prices to what analysts called "an oversold territory" or a level where prices might be soon pick up after hitting the bottom.

Reports of massive redemptions from Unit Investment Trust Funds (UITFs), a form of investment offered by banks with high yields, also accelerated the local market's drop, fueling a selling spree in local equities.

Elizabeth L. Sanchez