The benchmark stock index is expected to stay above the 7,500-point level in this week’s shortened three-day trading period, amid the positive outlook on the domestic economy.
“We expect local participation to dominate as most fund managers take their Lenten break. Seize on dips to position and hunt for stocks with good upsides. Immediate support is 7,500, resistance 7,650 to 7,670,” F. Yap Securities said.
Economic planners said the domestic economy likely expanded 6.5 percent to 7 percent in the first quarter on strong consumer spending and investments.
“While inflation ticked higher last month, it is worth to note consumer prices are still within single-digit, with no near-term threat for the economy to overheat in in the first half of 2017. Fund managers’ cognizance of higher infra budgets will support improved investment spending, and boost corporate earnings in turn,” stock brokerage company F. Yap Securities Inc. said.
Analysts said despite the favorable developments in the local front, investors would continue to watch closely the recent geopolitical headlines, including the US government’s military strike order on a Syrian air base following the Syrian government’s chemical attack on civilians.
The Philippine Stock Exchange index, the 30-company benchmark, jumped 3.7 percent over last week’s five-day market trading to close at 7,583.75 on April 7, as foreign funds returned to the local market.
The broader all-share index also went up 2.8 percent to 4,524.16.
All sectoral indices ended in the green, led by property which jumped 5.9 percent, financials which advanced 4.3 percent and holding firms which rose 2.5 percent.
Foreign investors were net buyers last week by P8.3 billion, reversing the previous week’s net selling of P6.6 billion. Total foreign buying reached P29.6 billion while foreign selling amounted to P21.3 billion.
Top gainers last week were Megaworld Corp. which jumped 16.5 percent to P3.94, Metrobank which rose 9.1 percent to P87.30 and Metro Pacific Investments Corp. which climbed 9.1 percent to P6.56.
Heavy losers were LT Group Inc. which dropped 3.2 percent to P15.50, Wilcon Depot Inc. which declined 3.2 percent to P5.16 and Shakey’s Pizza Asia Ventures Inc. which retreated 2.9 percent to P13.20.