Stock market movements this week could be muted, analysts said, with investors discounting the implementation of a new tax reform law.
“I think things—because it will still be a short week—will be moving sideways … real trading with more volume [will be]on January 8,” BDO Capital and Investments Corp. President Ed Francisco said.
“It (share prices) will move slowly because we are not expecting any good news at all,” he added.
“The Train (Tax Reform for Acceleration and Inclusion law) was factored in already. If they start working on the next package, that’s when we [expect to]see a pick-up.”
Finance Secretary Carlos Dominguez 3rd last month said the second package of Train, which seeks to cut corporate income taxes as well as review the sin tax system, was “almost ready”.
Online brokerage firm 2TradeAsia, meanwhile, said the trading week “might see soft trades, as participants gradually return from the holiday break.”
“Any lull however, would be a good opportunity to position on bargains, especially those that have formed a solid base or have retraced from their recent highs,” it added.
The benchmark Philippine Stock Exchange index (PSEi) ended 2017 with a new all-time high, gaining 0.27 percent or 23.33 points to close at 8,558.42 last Friday.
The broader All Shares, meanwhile, added 0.53 percent or 26.27 points to finish at 4,989.97.