Stocks are expected to test the 8,000-point level this week, on increasing optimism about the Philippine economy.
Concerns over the negative impact of the incidents in Marawi City and Resorts World Manila on the domestic economy, however, could temper the extent of market’s rise, analysts said over the weekend.
Philstocks.ph trader Justino Calaycay said the Philippine Stock Exchange index, the 30-company benchmark, remained resilient amid emerging risks, both at home and abroad, and would likely stay strong on positive economic developments.
“Rising inflation, prospects of higher oil prices, a less-than-projected GDP in first quarter, unimpressive earnings cycle, changing dynamics in the global order lit up by an unpredictable US, increasing probability of more frequent US rate tweaks as well as the BSP [Bangko Sentral], martial law in Mindanao are but some of the subjects preoccupying investors’ minds, individually and collectively,” Calaycay said.
“Yet, it isn’t only the Philippine market that is showing signs of a revived bull. US stocks have risen to records. The bias for equities appears to be a shared preference across global investors,” he said.
The PSEi last week advanced 1.3 percent to close at 7,867.49 on June 2, while the broader all-share index climbed 1.2 percent to 4,689.88, after Congress approved the government’s first tax reform package.
Except for holding firms and mining and oil, all sub-indices ended higher last week, led by services which rose 4.7 percent and property which went up 3.7 percent.
Foreign investors were net buyers by P1.28 billion last year, as total foreign buying reached P17.1 billion while foreign selling amounted to P15.86 billion.
Top gainers last week were Rizal Commercial Banking Corp. which jumped 12.2 percent to P67.50, East West Banking Corp. which rose 10 percent to P25.70 and index heavyweight PLDT Inc. which climbed 8.3 percent to P1,744.
Among the heavy losers were Pilipinas Shell Petroleum Corp. which declined 5.3 percent to P64.20, GT Capital Holdings Inc. which shed 4.8 percent to P1,189 and DoubleDragon Properties Inc. fell 3.5 percent to P48.75.