Stocks are expected to resume the upward momentum this week, with the index likely to trade above the 8,000-point level as foreign funds continue to flow to the local equities market.
Analysts said the rally during the shortened three-day trading session last week could also boost market trading this week.
“We expect the bullish run to continue [this] week due to pent-up demand from the Easter hiatus. There are still a handful of companies that have yet to release their earnings results but these will likely be unveiled soon given the bourse’s April 15 deadline for annual reports,” RCBC Securities research head Raul Ruiz said in a weekly market recap.
BPI Asset Management said while the local stock market would continue to attract foreign funds, there could be some rotation of funds to laggards and mid-tier names, after the stock index reached all-time highs.
The bellwether Philippine Stock Exchange index gained 1.5 percent last week to close at 7,993.09 on April 1 while the broader all-shares index went up by 0.7 percent to 4,576.21.
The PSEi for the first time hit the 8,000 level on upbeat investor sentiment after the International Monetary Fund upgraded its growth outlook for the Philippines to 6.7 percent this year.
The PSEi set new record highs for 24 times since the start of the year and registered a gain of 10.5 percent year-to-date.
“Our stock market managed to close higher despite the decline in major Asian indices. This resilience has been evident as local economic and corporate developments continue to positively influence investor sentiment,” PSE president Hans Sicat said.
Except for the mining and oil sub-index, which declined 3.5 percent, all other sub-major indices ended in the green, led by property firms which jumped 2.7 percent; holding firms, which climbed 1.30 percent; and financial sector which rose 1.1 percent.