RSS

Market Outlook: AB Capital Securities (01 Dec 2014)

01 Dec
Opinion Issued on Support Resistance
Dec 1 2014  7260 / 7325

 

Market Outlook- AB Capital Securities (01 Dec 2014)

A breach in the 2-month trend support following the 1.24% drop from the PSEi last Thursday is a signal that the market may be entering into a near-term bear market.

Given this, we see the near-term support and resistance at 7,260 and 7,325, respectively, with a failure to recover from the support breach affirming a short-term bearish bias with a downward target of 7,200.

Get FREE stock analysis, special reports and brokers’ recommendations!

Also, market liquidity has weakened following a combined PHP 33 billion worth of IPOs, FOOs and private placement in the months of November and December. The initial public offering of SSI Group, Inc. (SSI), Xurpas, Inc. (X)m and Phoenix Semiconductor Philippines (PSPC) contributed roughly one-third or PH 10 billion in value.

Meanwhile, Max’s Group, Inc. (MAXS) and Integrated Micro-Electronics, Inc. (IMI) are having a follow-on offering worth a combined PHP 5 billion while SM Prime Holdings, Inc. (SMPH) had a PHP 18 billion private placement this week to fund its investments in Ortigas.

Fundamentally, we expect full year GDP growth to miss the 6.5%-7.5% government target given the lower Q1 and Q3 GDP results.

The disappointing results as well as downward revisions of banks and economists may put negative pressure on equities in the next few weeks.

Advertisements
 
Leave a comment

Posted by on December 1, 2014 in Market Outlook, Stock Market

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

 
%d bloggers like this: