AB Capital: Philippine stocks to move sideways

MANILA, Philippines – Philippine stocks are expected to move sideways this week, with possible quarter-end window-dressing in the next few days said by AB Capital Securities Inc. in its weekly outlook report.

The expectations come as the standard Philippine Stock Exchange index (PSEi) dipped last week at 0.36 percent to 7,261.3, after hitting an intra-day high above 7,400.

The index subsequently pulled back on profit-taking. The Asian Development Bank cut the country’s 2014 growth forecast from 6.4 percent to 6.2 percent and for 2015, from 6.7 percent to 6.4 percent.
“We expect the PSEi to course sideways [this] week, with a wider trading band to allow for a possible quarter-end window-dressing early [in the] week as well as profit-taking after the climb,” said by AB Capital equities analyst Joyce Anne J. Ramos in a report.
“We advise investors to be cautious about their positioning—an entry near the 7,200 level is an opportunity for bargain-hunting,” she added.

Jonathan Ravelas, BDO Unibank Inc. chief strategist, tweet last week that he noted that the 7,200 was crucial and a dip below this could retest the 7,000 level.

Ramos also said investors would also be looking toward economic indicators as well as geopolitical developments abroad for the coming week. She also added that the Developments regarding the tension between Russia and Ukraine as well as about Iraq Prime Minister Haider Al-Abadi’s warning to US and Paris about a possible attack on their subway system could also be a determinant of the index’s direction.

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