Stock market to test 6,500-point mark

After breaking the 6,400-point resistance level, the share prices may attempt to break the 6,500 mark this week on expectations quarantine measures will further ease in November that could boost the recovery of the domestic economy.

BDO Unibank Inc. chief investment strategist Jonathan Ravelas said improved investor sentiment was driving optimism in the market after some data showed a recovery in manufacturing and on prospects that quarantine measures would be relaxed after the number of COVID-19 cases in the country declined in recent days.

Optimism about the US stimulus program is also fueling the local equities market, according to Regina Capital Development Corp. head of Sales Luis Limlingan.

Meanwhile, hopes of improved earnings by listed companies in the third quarter of the year is pushing the Philippine stock exchange Index into the positive territory.

Universal Robina Corp. and Bank of the Philippine Islands last week reported mixed earnings results. URC booked a 7.2-percent growth in nine-month net income while BPI posted a 22.1-percent drop in profit in the same period as it continued to increase its loan loss reserves amid the pandemic.

Among the companies scheduled to release earrings results this week are SM Prime Holdings Inc., BDO Unibank Inc., Puregold Price Club Inc. and Semirara Mining and Power Corp.

The PSEi jumped 9.9 percent week-on-week, or by 585 points, to close at 6,484 on hopes of an economic rebound in the fourth quarter.

All sector induced were in the green led by property (+13.06 percent), holding firms (+11.38 percent), and financial (+8.24 percent).

The average daily value turnover rose to P8.5 billion while foreign buying and selling were even.

Weekly top price gainers included Ayala Land Inc., which surged 15.8 percent to P33.95; SM Prime Holdings Inc., which advanced 13.3 percent to P34.50; and URC which climbed 6.9 percent to P141.70.

The few weekly top price losers included ABS-CBN Corp., which fell 4.6 percent to P11.64, and Cebu Landmasters Inc., which slipped one percent to P4.68.

Global stock markets, meanwhile, were mostly firmer Friday on hopes US leaders will finally agree to a coronavirus economic stimulus package, while sharply rising case numbers and weak data in Europe capped gains there.

New York opened flat but the Nasdaq and S&P managed gains at the close, while the Dow dipped slightly after a mixed bag of company results that gave some firms sharp losses.

The markets are watching closely to see if, as seems to be the case, the upward momentum of the third quarter slows in the final part of the year as governments introduce new restrictions to tame the upsurge in the pandemic.

Democratic House Speaker Nancy Pelosi said both parties “continue to be engaged in negotiations, and I am hopeful we will be able to reach an agreement.”

Pelosi has sought this week to pin down a deal with US President Donald Trump’s Treasury Secretary Steven Mnuchin even as Senate Republicans remain unconvinced.

However, Mnuchin acknowledged “significant differences” remain with Pelosi on a deal, and the odds of a bargain ahead of the election grew slimmer. With AFP