The visit of US President Barack Obama this week and expectations of good first-quarter corporate earnings should provide a boost to the local stock market.
Lexter Azurin, research analyst at Unicapital Securities, Inc., said that first-quarter earnings may be the most significant factor to drive the market this week while Obama’s visit is expected to further boost investor confidence.
Obama is set to arrive in Manila today (Monday) for a two-day visit.
However, Azurin also did not rule out the possibility that the index might continue its correction after the recent market run up.
“We also expect the market to sustain the downtrend given that about five days ago, we already breached the nine-month high. It’s [correction]actually just starting,” Azurin said.
On Tuesday last week, the main index breached its nine-month high and tested the 6,800-mark before eventually settling at 6,784.95. It was the highest closing level for the local stock market this year.
However, profit-taking through the rest of the week pulled the index back to the 6,600-level by Friday.
On Friday, the Philippine Stock Exchange index (PSEi) ended 46.23 points or 0.69 percent lower at 6,685.10, while the broader all shares fell 20.71 points or 0.51 percent to 4,043.16.