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Friday, March 29, 2024

Market likely to stay above 7,800

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Stocks are expected to move sideways this week with the benchmark index staying above the 7,800-point level, as the expected increase in US interest rate likely to temper the positive outlook on the domestic economy.

F.Yap Securities said investors would monitor the release of latest jobs data from the US, with better-than-expected employment data supporting the US Fed’s intention to raise interest rates in its June meeting.

Philippine equities may also attract foreign fund inflows going out of Shanghai, as a result of Moody’s recent move to downgrade China’s rating.

Meanwhile, the upcoming initial public offerings of Eagle Cement Corp. and Cebu Landmasters Inc. are expected to boost liquidity in the stock market. The month-end window dressing could also help push the market to stay above the 7,800 level.

The Philippine Stock Exchange index, the 30-company benchmark, rose 1.3 percent to close at 7,867.49 on May 26, while the all-share index climbed 1.2 percent to P4,689.88, despite the security problems in Mindanao and the declaration of martial law in the region.

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Four sectors ended in the green, while mining and holding firm indices declined 0.2 percent percent, each.

Foreign investors were net buyers of P1.28 billion worth of stocks last week, when the daily turnover averaged P7.9 billion.

BDO Unibank Inc. chief investment strategist Jonathan Ravelas said market players positively responded to President Rodrgio Duterte’s decisiveness to act swiftly to end the security crisis in Mindanao. 

“The government reassured investors that it has enough buffers to withstand the effects of the martial law in Mindanao,” Ravelas said.

Top gainers were PLDT Inc. which advanced 8.3 percent to P1,744, Ayala Land Inc. which rose 7 percent to P40 and China Banking Corp. which went up 5.7 percent to P37.35.

Heavy losers included Phoenix Petroleum Philippines Inc. which declined 8.4 percent to P10.22, Pilipinas Shell Petroleum Corp. which dipped 5.3 percent to P64.20 and GT Capital Holdings Inc. which shed 4.8 percent to P1,189.

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