Share prices are expected to test the 8,500-point mark this week as the overall domestic economic picture remains rosy, specially with the likely implementation of the tax reform program of the Duterte administration.
Investors are also positioning their portfolio ahead of the release of third-quarter earnings report of listed companies.
“Chartwise, the week’s close at 8,447.94 highlights the market is on track to test the 8,500/8,600 levels in the near-term. Immediate support and resistance is seen at 8,000 and 8,500 levels, respectively,” BDO Unibank chief investment strategist Jonathan Ravelas said.
BDO Capital and Investments Corp. president Eduardo Francisco said investors were anticipating the approval of the tax reform program pending with the Congress.
Francisco said the tax reform program was programmed to fund the government’s infrastructure projects, with investors expecting the bill to be passed before the end of the month.
Francisco said local firms also remained remain positive with domestic economy as many of them were still looking to raise funds through the bonds and equities markets before the end of the year.
The PSEi last week climbed 1.65 percent to close at an all-time high of 8,447.94, while the All Shares Index gained one percent to 4,938.11 despite external and local developments.
The financials index led gainers, climbing 7.27 percent, while the property and holding firms rose 2.55 percent and 2.12 percent, respectively.
Services, meanwhile, declined 2.7 percent, while the mining and industrials dropped 2.2 percent and 0.46 percent, respectively.
The market’s continued ascent, however, would not be sustained without the support of foreign funds. Overseas investors were net sellers for the week by P150.7 million.
The average daily value traded stood at P8.5 billion from the previous week’s average of P7.07 billion.
Weekly top gainers include Rizal Commercial Banking Corp., which climbed 19.7 percent to P57.45; Ayala Corp. which advanced 5.52 percent to a record high of P1,071; and SM Prime Holdings Inc, which rose 5.3 percent to P36.50 per share.
Weekly top price losers were Robinsons Retail Holdings Inc., which declined 7.6 percent to P97.90; Megawide Construction Corp., which dropped 7.4 percent to P16.44; and EEI Corp., which lost 6.5 percent to P12.90 apiece.
Wall Street stocks, meanwhile, finished higher Friday, with the Nasdaq edging to a fresh record, following data showing strong US retail sales in September.
US retail sales jumped 1.6 percent last month due to strong trade in cars, car parts and fuel following US hurricanes, Commerce Department data showed.
“In our view, the American consumer has quite a bit of firepower, even if some of this is being funded by credit,” said Neil Saunders, managing director of GlobalData Retail.
The Dow Jones Industrial Average finished at 22,871.72, up 0.1 percent, narrowly missing a record.
The broad-based S&P 500 added 0.1 percent at 2,553.17, while the tech-rich Nasdaq Composite Index advanced 0.2 percent to 6,605.80, topping Wednesday’s record by about two and a half points. With AFP.