Share prices are expected to move sideways this week as the market continues to build momentum toward the anticipated Santa Claus rally.
Analysts said discussions by Congress’ bicameral conference committee on the government’s tax reform would continue to influence the market this week.
“We expect further developments in the bicameral conference committee on the tax reform bill to move the market, particularly stocks and sectors directly affected by yet-unresolved differences in proposed tax rates,” RCBC Securities research analyst Jeffrey Lucero said.
BDO Unibank chief investment strategist Jonathan Ravelas said the market could test 8,400 and 8,500 points before the end of the year.
“Chartwise, the week’s close at 8,304.70 highlights some buying support emerged near the 8,050/8,100 levels. With the market closing above the 8,300 levels, the market is poised to try the 8,400/8,500 levels,” Ravelas said.
The PSEi last week jumped 1.97 percent to 8,304.70 after the previous week’s decline on bargain hunting and renewed optimism with the pending passage of the tax reform program of the government.
The broader All Shares Index advanced 1.53 percent to 4,858.86.
All sub-indices ended in the green led by industrial, which rose 3.52 percent, holding firms which climbed 1.78 percent, financial which gained 1.64 percent, and property which increased 1.55 percent.
Mining and oil also rose 0.8 percent while services climbed 0.5 percent.
Foreign investors, however, were net sellers for the week by P1.68 billion, while the average daily value fell to P6.9 billion from the previous week’s average of P10.9 billion.
Weekly top price gainers were San Miguel Pure Foods Co. Inc., which rose 12.6 percent to P563; Universal Robina Corp., which advanced 9.1 percent to P144, and Energy Development Corp., which gained 5.6 percent to P5.77.
Weekly top price losers were Philweb Corp., which declined 7.2 percent to P8.33; Vista Land and Lifescapes Inc., which dipped 4.4 percent to P5.65; and Atlas Consolidated Mining and Development Corp., which lost 4.1 percent to P4.65.
Meanwhile, global stocks rocketed higher Friday, with Wall Street indices ending at fresh records, following strong US jobs data and a breakthrough in Brexit talks between Britain and the European Union.
Investors greeted an unusual confluence of positive trading catalysts that also included strong economic data out of China and Japan.
“From a macro standpoint, today has produced a lot to chew on, and thus far, the stock market isn’t choking on any of it,” said Briefing.com analyst Patrick O’Hare in a note.
“On the contrary, the news has gone down smoothly, leading to a positive bias in the futures trade.”
US stocks were in positive territory the entire session after the Labor Department reported the US economy added 228,000 jobs last month and unemployment held steady at a low 4.1 percent.
“It’s momentum that’s driving the market at this point,” said Gregori Volokhine, president of Meeschaert Capital Markets. “Investors who sell at the slightest sign of weakness are being punished.” With AFP