The Philippine Stock Exchange index closed the year at 7,230.57 points, high but not as exuberant as hoped for by market players.
Harry Liu, president of Summit Securities Inc., said that the positive market for the last trading day in 2014 was driven by the leads in the US markets and the yearend buying and window dressing.
“The market was up but did not meet the 7,400 point target, so I think market went back to consolidation stage. Trading range for next year is at 7,100 points to 7,400 points,” Liu said.
The market’s closing trade for the year was pumped up by the Wall Street gains — Dow Jones up 23.50 points, while S&P 500 added 6.89 points and Nasdaq gained 33.39 points.
“If the US continues its gains and the European markets improve, then we can expect the improvement in the first quarter next year, also because of the yearly corporate earnings reports. If we break the 7,400 mark next year, then 8,000 points target is achievable,” he added.
Liu said that all indications for next year are positive for the local market, given the arrival of the pope in January, 2015 Asia-Pacific Economic Cooperation (APEC) meets in the Philippines, lower oil prices and inflation, as well as the boost in government infrastructure spending mostly on the public-private partnership (PPP) road, ports and other transportation projects.
Jason Escartin, investment analyst at F. Yap Securities Inc., agreed with Liu saying that the market closed higher as local portfolio fund managers “rode on window-dressing initiatives, as they prepare for 2015 targets.”