After a rather unpredictable week, the local stock market is now seen caught between the development of several local and overseas leads, which could either bring the benchmark index to another correction or a further recovery.
Jun Calaycay, Accord Capital Equities Corp. analyst, said that in so far as external influences are concerned, focus will be on three major issues—the debt ceiling debates, the US Federal Reserve tapering and the Syrian conflict.
While in the local stage, Calaycay pointed out that the pork barrel investigation can lend some uncertainties with respect to government spending.
“Nonetheless, the results of the first six months bear out that government’s under-spending has had little impact on the robust numbers, so far,” he added.
Heading into the closing month of the third quarter, Calaycay noted that the market’s direction remains consistent with estimates and projections made at the beginning of the year.
On Friday, Philippine shares concluded the week with sustained resurgence, even tapping the 6,000-point level anew amid local leads.
“Gross domestic product is above target, inflation is contained, remittances continued to expand, gross international reserves at record levels, among others,” Calaycay cited.
On Thursday, the country’s second-quarter gross domestic product growth of 7.5 percent helped the market pull off a quick recovery, after having been through steep declines during the early part of the week.
After wiping out year-to-date gains on Tuesday and Wednesday, the bellweather index jumped 3.59 percent, or 206.15 points to 5,944.21. The wider all-shares barometer rose by 3.23 percent, or 113.53 points to 3,629.08.