The benchmark Philippine Stock Exchange index is expected to stay above the 8,000-point level this week, ahead of the second-quarter earnings announcements.
Analysts said major catalysts for the equities market this week would include the release of second-quarter earnings by listed companies and the expected passage of the first phase of the Tax Reform Acceleration and Inclusion program in the third quarter.
“A fresh batch of corporate earnings is slated to be released this week, with radars set on banking, property and power sectors. Select index-based issues within these categories might serve as lead in the market’s overall 1H [first half] earnings expectation,” 2TradeAsia.com said.
Among the companies scheduled to report their second-quarter financial results are BDO Unibank Inc., Aboitiz Equity Ventures, Aboitiz Power Corp., Manila Electric Co. and Metro Pacific Investments Corp.
The continued inflow of foreign investments in the stock market is also expected to boost local shares this week,
“The PSEi bucked the general downtrend in Asia on positive investor sentiment ahead of the release of second-quarter earnings results. We have also seen net foreign buying in the last six days which indicates funds potentially favoring emerging markets on expectations of steady interest rates in the US,” said PSE president and chief executive Ramon Monzon.
The PSEi, the 30-company bellwether, climbed 1 percent last week to close at 8.071.47 on July 28, while the broader all-share index went up 0.4 percent to 4,790.60.
The index managed to stay above the 8,000-point level, buoyed by the US Federal Reserve’s decision to leave interest rates steady and President Rodrigo Duterte’s State of the Nation Address.
Except for the mining and oil index, which went down 0.4 percent and industrial which dropped 1 percent, all other sub-indices ended in the green led by property which jumped 1.5 percent and holding firms which advanced 1.3 percent.
Foreign investors were net buyers last week by P2.6 billion. Average daily turnover amounted to P6.7 billion
Top gainers last week Megaworld Corp. which climbed 5.1 percent to P4.94, Globe Telecom which rose 4.8 percent to P2.126 and Vista Land & Lifescapes Inc. which gained 4.2 percent to P5.99.
Heavy losers included Cemex Holdings Philippines Inc. which slid 17.4 percent P6.01, Century Properties Group Inc. which dropped 10 percent to P0.54 and First Gen Corp. which declined 4.7 percent to 17.62.