MANILA -- The stock market has been up in the last four days, but an analyst says it's not a sign that investors can start doing away with worries.
"In my radar, I'm really building a choppier second quarter. I think more corrections will flesh itself out," Juanis Barredo, chief technical analyst at COL Financial Inc. told [email protected]
The Philippine Stock Exchange (PSE) index, despite being back on the 6,700-level during Wednesday's morning trading, still has not fully clawed back the 6% in losses it incurred after an eight-day decline earlier in March.
"You'd probably see more choppiness from this point onward. We're [now] seeing a rebound actually from quite a heavy bit of a reaction which took place a couple of weeks ago but we've seen similar corrections also taking place around the region," Barredo said.
But further consolidation in the market is not expected to push back the index below 6,000-level, where it began at the start of the year.
"The PSEi could lock itself in a range of about 6,400 on the low side and hopefully we could go somewhere closer to our year-end target of 7,000," Barredo said.
The PSEi finished at 6,665.12 on Tuesday, almost 15% up from its 5,812.73-close in end-2012.
Barredo recounts the country's strong macroeconomic fundamentals have helped buoy the stock market and attract money into equities.
He pointed out the improved credit ratings, the liquidity, and the low interest rates are all helping drive interest in Philippine shares.
"So I think any bump you'll see in the market should be short-term and in the long term, I don't think investors have anything to worry about," Barredo said.