Stocks are expected to move sideways at the start of the second half, as the market continues to build its base to support a stronger rise.
Analysts said investors were expected to remain on the sidelines, while waiting for fresh leads on the economy.
Online brokerage firm 2TradeAsia.com said the current market trend could be a good time for investors to revisit specific stocks that had lagged for some time, especially those that would benefit from improved capital expenditures or investment initiatives.
“Aim for the key story line that will provide a significant boost on corporate earnings. This would include sectors that are poised to benefit from government’s infra-spending rollout,” 2TradeAsia.com said.
The bellwether Philippine Stock Exchange index last week rose 0.4 percent to close at 7,843.16 Friday, while the broader all-share index moved up 0.3 percent to 4,692.03. Data showed that since the start of the year, the benchmark gained 14.7 percent while the all-share index rose 12.9 percent.
All sectoral indices also posted gains, with the services sector increasing 29.5 percent.
The PSE said trading activity was also brisk in the first half of 2017, with daily value turnover registering P8.08 billion, up by 7.5 percent from the same period last year.
The stock market posted a net foreign buying of P22.04 billion in the six month period. Capital raised in the first half amounted to P106.74 billion.
“We are pleased with the overall market performance in the first semester while capital raising activity remains on target. We believe the economy will continue to provide more growth for listed companies and attract more investors in the market,” said PSE president Ramon Monzon.
“The passage of the tax reform bill and the infrastructure program of the government should help sustain the market’s growth momentum in the coming years,” Monzon said.