Stock market investors are this week expected to seek direction from latest news regarding North Korea while also making plays in anticipation of earnings reports and approval of the government’s tax reform plans.
“Last week, 2TradeAsia highlighted industry-related news that could perk up participation in the local bourse. We view this continuing this week, possibly with stronger emphasis on sectors that would benefit most ahead of the Q4 spending kick,” the online brokerage firm said.
Investors may be inclined to go bargain-hunting for retail, banks and property shares, it said.
“Several might be inclined to position ahead of the much-anticipated approval of the tax acceleration program of the administration, prior to its implementation in 2018,” 2TradeAsia added.
On the international front, the United States called last week called for an United Nations Security Council on Monday to vote on new sanctions versus North Korea, which last tested its biggest nuclear bomb to date.
“The investing community will heed … [the council meeting’s]results,” 2TradeAsia said.
Regina Capital Development Corp. meanwhile, said bullishness could prevail this week.
“Since most advances in [last week’s]trade were with third-liners, it is safe to say that the risk appetite of participants has extended and the bullish sentiment might continue until the end of the week,” it said.
The stock market closed flat last Friday, with the benchmark Philippine Stock Exchange index unchanged at 8,022.75 and the wider All Shares up 0.01 percent to 4,763.30.