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Friday, March 29, 2024

Stock market attempts to climb to 8,500 points

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Share prices are expected to move higher in the last trading week of the year as the market attempts to close the year at the 8,500-point level.

Analysts said the index might attempt to hit the 8,500 mark, the year-end target of investment companies, on the overall positive outlook on the economy for next year after the passage of the Tax Reform on Acceleration and Inclusion, an important element aimed at funding the infrastructure program of the Duterte administration. 

“Chartwise, the week’s close at 8,432.31 highlights the market still has some gas to try the 8,500 levels,” BDO Unibank Inc. chief investment strategist Jonathan Ravelas said.

Seasonal window dressing could also be big factor that would boost the market during the last three trading days.

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“Spot for good entry windows by seizing on weakness to position in shares that provide dividend play and promising capital appreciation,” F. Yap Securities said.

The PSEi last week rose 1.1 percent to 8,432.31 the from previous week’s close after President Rodrigo Duterte finally signed into law the fist package of the tax reform agenda.

The broader All Shares Index also climbed 1 percent to 4,921.4, led by holding firms which gained 1.86, property which rose 1.8 percent, and mining and oil which increased 1.7 percent.

Foreign investors were net buyers by P1.43 billion, while average daily value traded stood at P6.8 billion, down from the previous week’s average of P7.4 billion.

Weekly top price gainers include Jolliville Holdings Corp., which advanced 17.3 percent to P6.10 after the company reported it sold its combined 62-percent stake in Philippine H2O Ventures Corp. to Dennis Uy-led Udenna Development Corp. for P327.7 million.

Other weekly top gainers were PAL Holdings Inc., which rose 7.88 percent to P5.20 percent, and Aboitiz Equity Ventures Inc., which gained 7.7 percent to P72.70 after the company reported that it would spend P50 billion in capital expenditures for 2018.

Weekly top price losers were H2O, which dropped 10.7 percent to P6.05 after Udenna bared plans to conduct a tender offer for the minority shareholders at P2.17 apiece, and Leisure & Resort World Corp., which dipped 6.3 percent to P4.14.

Wall Street stocks, meanwhile, dipped Friday as President Donald Trump signed a long-awaited tax cut into law ahead of the Christmas holiday.

Trump moved up a bill signing originally slated for January to fulfill a promise to deliver tax cuts by Christmas. US stocks had risen to repeat records earlier in the month in anticipation of the measure, but began to sag this week as the proposal cleared the final hurdles in Washington.

“It’s a case of ‘buy the rumor, sell the news,’” said Quincy Krosby, chief market strategist at Prudential Annuities.

The Dow Jones Industrial Average dropped 0.1 percent to end the week at 24,754.06.

The broad-based S&P 500 dipped 0.1 percent to close at 2,683.34, and the tech-rich Nasdaq Composite Index also shed 0.1 percent to 6,959.96. 

Dow member Nike lost 2.4 percent after reporting second-quarter profit fell nine percent to $767 million. The sports apparel and sneaker giant reported a drop in North American sales and cautioned that profit margins would be pressured in the upcoming quarter. With AFP

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