Philippines share prices are expected to undergo a correction after hitting record highs in recent trading, dealers said on Friday. "Based on our studies, we reached a consensus that the market next week might decline," said Ron Rodrigo of Unicapital Securities.
"We looked at the technical aspects. Most of the stocks are already on the overbought level," he said. "If you look at individual stocks, most of them have reached all time highs or near record highs but in terms of earnings, they tend to lag behind."
He added "in terms of seasonality, when we're nearing the months of July and August, which are lean months, the index tends to consolidate." But a downturn next week would not be bad news, Rodrigo said. "It would be a welcome development if the market might correct, give us a breather," allowing investors to reassess the valuation of individual stocks.
He said he remained confident the market would hit further record highs later in the year. For the week to June 22, the Philippine Stock Exchange composite index rose 29.87 points, or 0.8 percent, to 3,701.16 points.
Average daily volume rose to 7.64 billion shares this week from 6.92 billion shares last week while average daily value rose to 11.6 billion pesos (251.7 million dollars) this week from 8.9 billion pesos last week.
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