Jan. 26 --A correction in Philippine equities may eventually occur in the next few days as investors may cash in their gains from the prior week's run-up. First Grade Finance Inc. managing director Astro del Castillo said that the market may start consolidating given the consecutive run ups in the prior week. "Expect profit taking next week especially it's only a four-day trading week [because of Chinese New Year ]," del Castillo said, referring to the Chinese New Year is on Friday. However, he specified that the trend will be "sideways with upward bias." According to del Castillo , the benchmark index may still test 6,200 points, especially if market optimism continues. Even if it recovered significant losses during the early hours of Friday's trade, the Philippine Stock Exchange index (PSEi) still managed to attain its eight-day run, rising by 0.35 percent, or 21.45 points to 6,191.50. During the morning session of Friday, value turnover more than doubled even as the breadth thinned, narrowed and eventually turned negative. "This could be an indication the market is getting ready for a correction as it tips the 6,200- to 6,220-point band. Sustaining this run would require strong positive earnings over the fourth quarter period reporting season," Jun Calaycay , Accord Capital Equities Corp. analyst, said. It was also last week when the market performed at its best since 2014's start, with the benchmark index hitting the 6,000-point level for the first time this year. On Wednesday, the local stock market wasn't only up for the sixth straight session but it also registered its best trading day so far. The PSEi on that day managed to prolong its rally during the morning session, soaring by 2 percent toward the end, or 120.62 points to close at 6,139.86. The broader all-shares index ended on a positive note as well with a 1.55-percent rise, or 56.67 points to 3,719.03. "The index has not only validated the 6,000 [-point] level but has breached through the 6,100-[point] mark. This type of an action raises the prospects of a nearterm pullback on a more aggressive profit taking. Nevertheless,it serves to add credence to the bulls' propositions. We can fairly expect activity to pick up on the next decline as investors shift from recognition and absorption of the realities of the day to action and response," Calaycay said. ___ (c)2014 The Manila Times (Manila, Philippines) Visit The Manila Times (Manila, Philippines) at www.manilatimes.net Distributed by MCT Information Services
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