MANILA, Philippines – Philippine stocks are expected to take it slow this shortened trading week following last week’s rally towards back-to-back record closes as investors prepare for the Holy Week break.
Trading in the Philippine Stock Exchange will temporarily stop on Thursday and Friday, and will return on Monday.
“Light trading may be expected in the approaching Holy Week shortened sessions,” said Justino Calaycay Jr., analyst at Accord Capital Equities Corp.
Some analysts, however, said it would not be a surprise if the local market pulls off another record-setting surprise before heading to its long break.
They said positive earnings results from companies who have yet to report on their full year 2014 performance as well as last week’s momentum may push the index to another run at all-time high levels over the next three trading sessions.
“A hold is still recommended as we expect sideways volatility this shortened trading week. However, since the PSEi already broke its monthly resistance, keep watch on any follow throughs which could signal another bullish wave for the index,” said Luis Limlingan, managing director at Regina Capital Development Corp.
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The Philippine Stock Exchange index (PSEi) last week posted its 20th and 21st record close of the year.
The benchmark stock index finished strong on Friday with a new record close of 7,877.96 and at the same time set a fresh all-time intraday high at 7,889.25.
“The only thing going against the bulls, alternatively in favor of the bears, is the duration of the latest run. This trend has held since it began in 2009 with the only major challenge coming two years ago — when the Fed started off the rumor-mill on tapering QE3. Since then, it has mainly been uphill, albeit the recent period covering roughly almost the entire March, the push to new record highs has tapered off, meeting stiff resistance at the 7,850 to 7,870 band,” Calaycay said.
