By Miguel Camus, Business Mirror | 12/09/2012 8:44 PM
MANILA, Philippines -- AB Capital Securities Inc., in its weekly outlook, advised investors to be cautious given the strong gains posted by Philippine stocks through the past two weeks.
“We see a slight possibility that having gone up too early and too soon calls for a moment of rest or consolidation,” AB Capital said in a research note.
The stock-brokerage firm noted that gains were largely unexpected at this point.
“We have already seen how fundamental valuations did not hold influence over the market this past week as share prices have continued to soar. While technical indicators likewise pointed to reaching overbought levels for stocks and the index alike, the current bullish sentiment might continue to propel the PSEi higher,” it said.
AB Capital pegged the “psychological” support at 5,500 points.
Philippine stocks continued their spectacular run, with the Philippine Stock Exchange Index (PSEi) hitting its 36th record high by the week’s close. The PSEi rose 2.22 percent to 5,794.20 points week-on-week.
“It was a warm welcome for December with investors pushing for a last hurrah this year. Although it seemed a little early, the bandwagon came in full and heavy as stocks soared to match the market’s bullish atmosphere,” AB Capital said.
“Gains were seen across the board with noteworthy performances from some banks, properties and holdings. Banking issues continued to soar despite valuations that surpass historical values,” it said.
Analysts have noted that sentiments were bolstered by a report