Index may correct this week

The benchmark Philippine Stock Exchange index (PSEI), the local stock market barometer, may reflect some market correction this week to support the index’s long-term trend, according to F. Yap Securities.

“Two attempts to trounce past 9,000 where highlighted during the week which could be a prelude to a potential new ‘base-building’ to support the PSEi’s long-term trend,” F. Yap Securities said.

“Immediate support is at 8,850 to 8,880 with resistance at 9,100 to 9,200,” F. Yap said.

Chris Mangun, head of research of Eagle Equities said there may be a pullback this week.

“I will not be surprised if we see a pullback this week as we are currently up 5.7 percent for the month. If we do see a pullback, our first major support will be tested at 8,910 and if that is breached we may see it come all the way down to 8,830,”Mangun said. “However, if we see an increase in foreign capital next week, we may maintain our momentum and stay above 9,000. Bluechip issues continue to show leadership, which is why I still have a very bullish sentiment on our market,” he said.

Last week, the PSEi made history as it breached the 9,000 mark and closed at 9,041.20.

It was the eight record high for the year and the first time ever for the PSEi to close about the 9,000 mark.

Many investors have said it could happen, but they also said it happened earlier than expected.