Stocks expected to sustain gains
Stocks are expected to extend their gains after the strong performance over last week’s shortened three-day trading, on expectations the Philippine economy will sustain its growth momentum.
Analysts said offshore investors were coming back to the local stock market after international ratings agencies and multilateral lenders relayed a positive outlook on the Philippine economy.
“Funds have shifted back to Philippine shores, backed by international agencies’ encouraging outlook on the economy’s fundamentals. Optimism may soon build in the coming months, ahead of first-quarter interim announcement from listed shares,” F. Yap Securities, a brokerage company, said.
“Moreover, local equities have benefited from nine consecutive days of net foreign inflows starting March 31, while the peso regained its strength vis-à-vis the greenback [P49.43:$1 close last 12 April],” F. Yap said.
The World Bank said the Philippines would remain a top economic performer in East Asia and the Pacific and predicted a 6.9-percent growth for the country’s gross domestic product. The forecast is within the government’s own growth target of 6.5 percent to 7.5 percent.
Deutsche Bank also said the Philippine growth would likely rise 6.2 percent in 2017, stronger than its previous estimate of 5.8 percent.
The 30-company Philippine Stock Exchange index climbed 0.6 percent over last week’s three-day market trading to close at 7,629.64 on April 12 ahead of the Lent, while the broader all-share index also went up 0.6 percent to 4,552.69.
Except for the financial sector which declined 0.6 percent, all other sectoral indices ended in the green led by industrial which advanced 2.1 percent, services which rose 1.4 percent and property which went up 0.6 percent.
Foreign investors were net buyers by P656 million last week, while average daily turnover amounted to P6.4 billion.
Top gainers last week were GT Capital Holdings Inc. which jumped 8.7 percent to P1,275, Cebu Air Inc. which gained 8 percent to P104.80 and Robinsons Land Corp. which advanced 7.3 percent to P25.85.
Heavy losers were China Banking Corp. which slid 3.3 percent to P38.20, Metropolitan Bank & Trust Co. which shed 3.2 percent to P84.50 and Puregold Price Club Inc. which declined 3.2 percent to P42.20.