Share prices are expected to stay above the 8,000-point level amid easing tension on the US-China trade war and an expected and sustained domestic economic growth.
BDO Unibank Inc. chief investment strategist Jonathan Ravelas said investors accumulated stocks following a better-than-expected gross domestic product growth numbers.
The government last week reported that third-quarter grew 6.2 percent from 5.5 percent in the previous quarter, and better than the 6-percent median estimates.
Luis Limlingan, head of sales of Regina Capital Development Corp., said the latest MSCI rebalancing could affect the flow of foreign funds into the country.
“The latest announcement of MSCI rebalancing implied that there would be a high exodus of foreign investors with the deletion of AGI (Alliance Global Group Inc) and DMC (DMCI Holdings Inc.),” Limlingan said.
The Philippine Stock Exchange Index hit an intra-week high of 8,216.92 before edging 1.1 percent higher to close at 8,065.6. The broader All Shares Index also rose 0.8 percent to 4,823.80, as investors cheered the better than expected 6.2-percent third-quarter economic growth.
Four of the six sectoral indices registered week-on-week increases, led by services (+2.6 percent), financials (+1.5 percent), holding firms (+1.3 percent) and industrial (+0.07 percent).
Mining and oil declined by 1.3 percent while property slipped 0.03 percent.
Weekly top price gainers were Bloomberry Resorts Corp., which rose 7.7 percent to P10.76; Robinsons Land Corp., which climbed 4.9 percent to P26.70; and International Container Terminal Services Inc., which gained 4.3 percent to P123.
Weekly top price losers were Alliance Global Group Inc., which fell 7.5 percent to P10.62; and DMCI Holdings Inc., which dropped 7.1 percent to P7.62.
Share prices of DMCI And AGI declined after the MSCI deleted the two stocks from its global standard indexes as a part of a quarterly index review.
Foreign investors were net buyers for the week by P602 million, while the average daily value traded stood stood at P6.79 billion from the previous week’s average of P6.5 billion.
Global stocks, meanwhile, were mixed on Friday, with US indices pushing to fresh records as investors remained fairly upbeat on the prospects of a US-China trade deal despite some confusing signs on where things stand.
US President Donald Trump said he had not agreed to roll back any import tariffs as part of a partial trade deal the two sides are negotiating, contradicting Chinese government statements the prior day that had linked a rollback of some existing tariffs to the finalization of the partial “phase one” trade deal announced last month.
The remarks weighed on US stocks much of the day but markets pushed into positive territory at the end of the day, lifting all three major US indices to fresh records.
It was the S&P 500’s third record this week amid optimism that the US-China situation is progressing towards a deal. With AFP