By Zinnia B. Dela Peña
The Philippine Star 01/29/2007
Share prices are expected to rebound late this week after last week's correction, analysts said.
For the week to Jan. 26, the Philippine Stock Exchange composite index rose 2.5 percent or by 77.64 points to close at 3,162.82 points on Friday.
The market rose for more than a week before it corrected on Friday, falling by 3.43 percent over Thursday's close.
Average daily volume this week fell to P3.79 billion shares worth 3.796 from 3.84 billion shares worth P3.94 billion in the previous week.
"Next week, we should be rebounding. (On Friday), we're just taking a break because we have been up for six sessions," said Allan Araullo of Regina Capital Development Corp.
"We should probably consolidate between 3,150 to 3,200 before moving beyond 3,200. Probably we will be above 3,200 by Thursday or Friday next week, he added.
He attributed the continued bullishness on "the expectations of a credit ratings upgrade for the Philippines, lower interest rates and the stronger Philippine peso."
Jasper Jimenez of BDO Securities Corp said "the correction should continue in the next trading sessions."
"What is critical now is for the market to find its support level before it tests the all-time high which is near the 3,400 level," he added.
"Market players will check if there might be possible follow-through sell-offs given Friday's sharp retreat, although we anticipate some fund managers to take advantage of this weakness to position in their favorite shares," 2tradeasia.com said.
2tradeasia.com said the decline, however, "does not warrant a significant shift in investors' long-term perspective on the Philippines' underlying macroeconomic story."
The extra push to buy will be driven by fund managers' zest for higher portfolio returns, specifically in power/energy, infrastructure, construction, mining and oil exploration, 2tradeasia.com said.
Last week's top gainers was led by PLDT, which reached an all time high of P2,805. The issue gained as much as 10 percent week-on-week.
AB Capital Securities said smaller cap issues are expected to hug the limelight as most blue chip issues are likely to correct or remain flat after reaching all time highs.
The brokerage house said Benpres Holdings Corp. is likely to catch up given Meralco's surge above P60 a share. BPC has indirect ownership in Meralco through First Philippine Holdings Corp.
AB Capital said Filinvest Devt. Corp. (FDC) has been stable the past two weeks and its movement will likely depend on subsidiary Filinvest Land Inc.'s listing of new shares on Feb. 6. — With AFP
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