SHARES OUTLOOK FOR THE WEEK

Market eyes new catalysts from Dutertenomics, Asean meetings

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MARKET-MOVING developments are likely to crop up when new details of the so-called Dutertenomics are revealed and from 30th Association of Southeast Asian Nations (Asean) Summit and related meetings this week.

“Market players will the check details surrounding the Dutertenomics, especially the highlights of expanding the percentage share of infra spending to 5.7 percent of gross domestic product. Such will be balanced out by financing options, in a way that will not overcrowd government’s expected fiscal deficit,” online brokerage firm 2TradeAsia said in a note.

“Of specific interest will be the private sector’s contribution, especially equity sharing and financing,” it added.
Dutertenomics supposedly sums up President Rodrigo Duterte’s key socio-economic agenda to broaden the gains of economic developments.

Also in the spotlight is a delicate mix of balancing fiscal and monetary policies without abandoning an accommodative stance, 2TradeAsia said.


US President Donald Trump’s expected to sign an executive order reviewing tax regulations that may have burdened US citizens.

“Given the latest assurance that planned US tax reforms will be made by the end of this year, regardless of whether the healthcare bill is passed, risk appetite could rise and validate possibilities for the Fed to tighten rates in sequel meetings,” the online brokerage said.

Likewise, the Bank of Japan and the European Central Bank (ECB) will conduct meetings this week and markets expect no change in accommodative policies despite the ECB signaling a stimulus exit.

Harry Liu, president of Summit Securities Inc., said the market will likely move sideways ahead of the long weekend to give way to the Asean meetings.

“The market is anticipating the outcome of the Asean talks and financial reports for the midyear and continuous efforts by the government to push more program-spending, and keeping an eye on the Trump policies,” he said.

Immediate support this week is seen at 7,500 on the benchmark PSEi, with the immediate resistance at 7,650.
On Friday, the PSEi was down 0.67 percent or 51 points at 7,578 week-on-week. All subsectors were in the red except the holding firms index, which was up 0.08 percent.

Foreign funds were net sellers at P236 million, reversing previous week’s P219 million of net buying.

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