InterAksyon.com means BUSINESS
MANILA - Philippine share prices will continue to seek guidance from corporate earnings with a number of index heavyweights set to report their performance for the first half of the year.
Conglomerates are also seen to gain in the next sessions based on the released earnings of their subsidiaries, said AB Capital Securities Inc.
"After breaching a high at 5,400, chartists are likely to keep a watch if the PSEi would re-test this level, or consolidate ‘smaller highs’ slightly above the 5,300 territory. The key factor would come from interim results for the initial semester, especially for upcoming announcements from heavyweights: PLDT, Globe Telecom, Manila Water, Aboitiz Equity, Metro Pacific and Ayala Corp.," said Freya Natividad, investment analyst at 2TradeAsia.com.
While the benchmark index's weekly chart shows the market may be ripe for a mini-correction that may drag the measure towards the 5,190-line or as far back as 4,750, favorable earnings results may delay the pullback, said Jun Calaycay of Accord Capital Equities Corp.
"Ideally, some easing followed by a consolidation phase should be able to build a solid base from which the third rising leg may build en route to our 5,600 to 5,800 PSEi year-end range projection," said Calaycay.
Investors will also monitor domestic factors like the consumer price index that will provide an insight on how the country will fare on its second quarter economic growth, AB Capital said.
The Bangko Sentral ng Pilipinas will likewise convene for the monthly inflation report. The central bank's inflation target range is at 3 to 5 percent.
Optimism from the domestic outlook will be tempered by increased apprehension over the pace of progress in Europe’s debt crisis, the recovery of the US economy and China’s growth during the traditional ghost-month of August, Calaycay said.
Friday's session in the US will lend a positive spin at the start of the trading week after the Dow Jones industrial average surged to a three-month high, climbing 217.29 points, or 1.7 percent, to 13,096.17.
Triggering the rally was the Labor Department report that showed US employers adding 163,000 jobs in July, the most in five months. However, the unemployment rate increased to 8.3 percent.
"Economic trends in the US might help douse off weakness in the euro area, although more spotlight might be made on the latter this week. Concerted action on how the bond repurchase plan would be effected will be checked, including other austerity measures that will be adhered to," said Natividad.
InterAksyon.com means BUSINESS
BUSINESS NEWS
