A top investment banker said Thursday local shares are expected to advance by 3 percent to 5 percent by the end of the year, provided that the government addresses issues of graft and corruption.
Eduardo Francisco, president of BDO Capital Investments Corp., told reporters that resolving the current controversy over flood control projects “will attract investors” and help boost the stock market.
“Unless major heads roll and the issue of graft is addressed, I think that will attract investors,” he said.
Francisco noted that while the flood control issue has not caused a market decline, it is distracting investors from the country’s strong economic performance.
“Instead of talking about investments, we are talking about this. It’s a pity because the country’s GDP (gross domestic product) is really good,” Francisco said.
On Thursday, share prices inched up by 6.80 points, or 0.11 percent, to close at 6,126.89. The broader all-shares index was nearly unchanged, ending at 5,691.73. The peso continued to slide against the U.S. dollar, closing at 57.191 on Thursday from 57.125 on Wednesday.
Sector performance was mixed. The financials sector led the gains, up 0.82 percent, followed by services, which rose 12.10 percent. Meanwhile, the mining and oil sector declined 1.28 percent, property slipped 0.60 percent, holding firms were down 0.23 percent and industrials dropped 0.04 percent.
Value turnover was thin at P4.89 billion. Overseas investors were net buyers, with inflows of P150.61 million.
DigiPlus Interactive Corp. was the day’s top gainer, rising 6.62 percent to P21, while Converge ICT Solutions Inc. was the main index laggard, declining 8.3 percent to P12.82.
