The stock market could be lifted into 8,000 territory this week given gains in the US, fresh earnings reports and possible optimism over next week’s release of second quarter economic growth data.
“[T]he Philippines may reattempt another break into the 8,000 territory after the Dow [Jones] closed at another record for the 8th consecutive time,” Regina Capital Development Corp said in a market note released during the weekend.
“Earnings releases will weigh heavily on this to happen and early bets on the second quarter gross domestic product may add to speculation,” it added.
COL Financial chief technical analyst Juanis Barredo, meanwhile, said the market could find it hard to breach a resistance level “because there has to be a catalyst that should push it up and right now as we come closer to that area, the market will start taking their profits first.”
“August is a traditionally a weak month so what our recommendation here is if it can happen, if August is weak month then you look for potential buys after August or in the end of August or maybe number in line with potential year-end break for the index, hopefully in between August and November but I don’t know this week—perhaps a bit thin and it would be that difficult. It might boost but I don’t think it can break the 8,136,” Barredo said.
Share prices rose on Friday with the benchmark index back at the 7,900 level, boosted by news that Lopez-led First Gen Corp. was selling stake in unit Energy Development Corp.
The bellwether index added 56.16 points or 0.71 percent to close at 7,932.82. The broader All Shares grew 19.81 points or 0.42 percent at 4,734.38.
Abroad, the Dow Jones Index rose by 0.3 percent on Friday to end at a fresh all-time high of 22,092.81. It gained 1.2 percent during the trading week.
The Philippine Statistics Authority, meanwhile, is scheduled to release second quarter economic growth data on August 17. Socioeconomic Planning Secretary Ernesto Pernio expects a result to “approach 7 percent”, picking up from the weaker than expected 6.4 percent recorded for the first three months of 2017.