By James A. Loyola
The local market is seen to continue to trade cautiously this week, ahead of the US FOMC meeting on March 20-21 2018, although upside support might come from index-tied shares slated to report on their growth outlook.
Online brokerage firm 2TradeAsia.com said these stocks include Ayala Corporation, Security Bank, San Miguel Corporation and its subsidiaries, Phoenix Petroleum, DMCI Holdings and LT Group.
“The focus should now be on companies’ capex deployment for the year and attributes that go with it in terms of plowback to the earnings cycle. The capital- raising exercise will be aplenty on the selection zone, and these are aligned to government’s thrust to boost its fiscal agenda & support industries that would yield improved employment opportunities,” 2TradeAsia.com said.
It added that, investors should “stay alert for liquidity risks in third-tier bets whose run-up has been driven largely by speculative stories.
Abacus Securities Corporation continues to recommend investors to watch Wilcon Depot which is approaching its resistance level of P11.80 per share. “A breakout past P11.80 may signal a move towards P12.90,” it added.
Eagle Equities Research Head Chris Mangun noted that, “as the market continues to consolidate there are a couple of scenarios that may play out. It has held our support at 8,330 which may be a pivot level and we may see the market start to recover.”
“The other scenario is if support is broken at that level we may lose another 200 points as it tests our next major support at 8,070. The key to the deal is we need to see more volume before we see the market recover,” he added.