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Thursday, March 28, 2024

Market to test 8,300 on favorable outlook

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Share prices this week are expected to test the 8,300-point level on the overall positive outlook on the economy. 

Analysts said reports that the Senate would try to pass the tax reform program close to the proposal of the Department of Finance as well as positive unemployment data were boosting investor confidence on the domestic economy.

“Chartwise, the week’s close at 8,180.85 highlights the market is gaining momentum to sustain the rally above 8,000. If the rally is sustained, we continue to see a breakout of a consolidation and could lead to a test of at least 8,300 levels,” BDO Unibank Inc. chief investment strategist Jonathan Ravelas said.

The end of the ghost month on September 19 could also boost trading in the coming days.

PSE president Ramon Monzon attributed the market’s strong performance to the favorable outlook in the economy.

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“Market sentiment continues to be positive buoyed by the favorable outlook of analysts on the overall market. This optimism was again validated with the market closing today at yet another record high and with trading value exceeding P11 billion. We remain hopeful that our market levels and trading volumes continue to be robust,” Monzon said.

After one month of consolidation, the PSEi last week jumped 1.97 percent to close at a new all-time high of 8,180.85, while the broader All Shares Index surged 1.53 percent to 4,836.33 on strong macroeconomic fundamentals despite political risks.

All sub-indices ended in green led by property which advanced by 3.74 percent, mining and oil which rose 3.29 percent and holding firms which climbed 2.02 percent. 

The industrial index increased 1.25 percent while the financial and services rose 0.15 percent and 0.13 percent, respectively.

Foreign investors were net buyers for the week by P3.4 billion, while the average daily value traded reached P9.6 billion from the previous week’s average of P6.8 billion.

Among the weekly top price gainers Robinsons Land Corp., which rose 8.5 percent to P25.35; Filinvest Land Inc., which increased 7.4 percent to P1.91; and First Gen Corp., which advanced 7.1 percent to P19.

Weekly top price losers, meanwhile, were DoubleDragon Properties Corp., which declined 8.05 percent to P40; Melco Resorts and Entertainment (Philippines) Corp., which dropped 7.6 percent to P8.50; and Rizal Commercial Banking Corp., which declined 6.04 percent to P50.55.

New York stock markets ended the week on an upbeat note, with new records for the Dow and S&P as investors brushed off weak US economic data and another North Korea missile launch. 

Even after an attack on the London subway during the morning rush hour and data showing a big hurricane impact on US economic activity, Wall Street investors were determined to push prices higher.

“They seem to be looking past the economy. They want nothing to rain on their parade,” economist Joel Naroff said in a commentary.

The Dow Jones Industrial Average closed at its fourth straight record, rising nearly 0.3 percent to 22,268.34, while the broader S&P 500 rose 0.2 percent to 2,500.23, edging to a new all-time high. The tech-rich Nasdaq was up 0.3 percent to 6,488.47. With AFP

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