Stocks are expected to resume their upward momentum this week, after last week’s shortened trading, amid positive developments in the domestic front.
RCBC Securities said investors would likely come back recharged from the long holiday to muster up another rally in the final stretch of earnings season.
Investors’ optimism will also be boosted by Banko Sentral ng Pilipinas’ decision to keep the benchmark rates unchanged, on robust growth condition and manageable inflation outlook.
Bangko Sentral on March 22 retained the key policy rates at 4 percent for overnight borrowing or reverse repurchase facility and 6 percent for overnight lending or repurchase facility.
Bangko Sentral also reduced the average inflation forecast to 2.1 percent from 2.2 percent for 2016 and 3.1 percent from 3.2 percent for 2017, on subdued price pressures, delayed power rate adjustments and lower transport fares.
Analysts said the 31-percent increase in imports in January, the highest level since November 2010, was a positive development for the country as it signified increasing investment demand in the country.
The decline in oil prices on concerns over excess supplies following US stockpiles data could cause the global markets to slide, analysts said.
The Philippine Stock Exchange index, the 30-company benchmark, closed higher by 0.7 percent to 7,360.05 on March 23, led by industrials (up 1.6 percent); holdings firms (1 percent), financials (0.9 percent) and property (0.4 percent).
The bellwether advanced for five straight weeks, after breaching the 7,000-point barrier this week. It also reversed the losses in the first two months, bringing the total gains since the start of the year to 5.9 percent.
Foreign investors were active in buying local stocks during the shortened trading week, as total overseas buying hit P11.95 billion while overseas selling amounted to P10.9 billion.
Among the top gainers last week were Alliance Global Group Inc., which rose 6.7 percent to P16.9; Petron Corp., which advanced 6.4 percent to P10.96; and Travellers International Hotel Group Inc., which jumped 6 percent to P3.91.
Top price losers were Melco Crown (Philippines) Resorts Corp., which lost 5 percent to P2.69, Globe Telecom, which dipped 3.8 percent to P2,106; and Philex Mining Corp., which fell 3 percent to P5.82.