The absence of leads on the domestic side will again lead the attention of stock investors toward external factors, which is basically focused on the US government shutdown, following debt ceiling issues.
Abbygayle Estrela, equities analyst at AB Capital Securities Inc., said that the market for this week will be more focused on overseas developments, given the US shutdown.
“The shutdown’s average is three days. Dapat may plan na nakahanda ang Congress pero ngayon wala pa [The US Congress should have already prepared its plans but until now, there’s none],” she further said.
Freya Natividad, analyst at Papa Securities Inc., agreed with Estrela, specifying that a lot of investors are still waiting for a decision on the US budget.
“Support is 6,250 [points]. Kung may good news from US [If there’s a good news from US], we can hit 6,500,” she added.
On the domestic side, Estrella said that there may still be no significant factors that can be crucial to the market yet, adding that last week, the market just basically “shrugged off the shutdown.”
Estrella also said that there will be some positioning in the near term given the upcoming earnings season. Following Thursday’s ascent, Philippine shares staged a modest trade in the last session for the week.
Jun Calaycay, Accord Capital Equities Corp. analyst, said that the benchmark index showed on Friday that it can easily regain the 6,300-point handle, even making an attempt at 6,400 points in the absence of fears over external events, an action that has been performed by the market consistently since May.
On Thursday, the Philippines secured a rating upgrade from international debt watcher Moody’s Investors Service, which was eventually felt on the country’s equities market and pushed the main index higher.
Moody’s lifted the country’s credit rating to “Baa3,” the lowest investment grade. Earlier in the year, Fitch Ratings Inc. and Standard and Poor’s raised their respective grades for Philippine debt papers.
In general, Estrella said that the market was influenced more by corporate developments than other factors.