Profit-taking seen following market gains
Credit to Author: The Manila Times| Date: Sun, 27 Jan 2019 16:15:48 +0000
THE stock market could trade lower as investors are expected to take profits following a nearly 8-percent gain since the start of 2019, an analyst said.
Eagle Equities Inc. research head Christopher Mangun, in a market comment, said he expected market players to cash in “after the incredible run that we have seen in the last three weeks.”
The Philippine Stock Exchange index (PSEi) is up 7.86 percent from the last trading day of 2018. Week-on-week, it was up 0.57 percent as of last Friday.
Online brokerage firm 2tradeasia.com, meanwhile, said it was expecting the market to take a pause on account of month-end window-dressing and ahead of Chinese New Year.
Congress approval of the 2019 budget ahead of next week’s adjournment, it added, “could reinvigorate interest on infrastructure rollout.”
Other factors that could affect trading this week include the US Federal Reserve’s first policy meeting for the year, during which it is expected to hold fire after hiking interest rates last month.
Investors will also be waiting for latest manufacturing data from China given concerns over its slowing economy. The start of renewed trade talks between Washington and Beijing this week will also be closely watched.
Gains on Wall Street last Friday could provide an impetus for Asian markets, along with news that a record US government shutdown had ended.
The bellwether PSEi bucked a regional rise on Friday, closing down 0.14 percent or 11.70 points to 8,053.20, while the wider All Shares dropped by 0.16 percent or 7.61 points to finish at 4,853.62.
FROM A REPORT BY ANGELICA BALLESTEROS
The post Profit-taking seen following market gains appeared first on The Manila Times Online.