PH stocks seen higher this week on US recovery hopes


Philippine shares are likely to trade higher this week on expectations that the world’s largest economy is on the mend, and ahead of the release of key US economic data. Improving valuations are also seen boosting interest in local equities.

In its weekly outlook, BPI Asset Management said market movements this week will be driven mostly by expectations of a US economic recovery as most data releases showed that the world’s largest economy is close to its pre-rcession levels.

“We expect investors of global equities to take positions given the profit-taking seen in the latter part of [last]week, given more attractive valuations,” the company said.

It said market participants are expected to watch out for the release of the US monthly industrial production index, consumer price index, the outcome of the Federal Open Market Committee meeting and forecasts, and jobless claims.

Global equities were mostly flat last week as market players factored in a mixed bag of economic data and current events, such as strong economic data released in the US and the escalation of the US-Iraqi conflict in the Middle East.

In Asia, markets were mostly up on positive US data releases, the European Central Bank’s new stimulus measures, and country-specific factors.

“Upswings in Asian share prices were mostly a result of [markets]tracking strong economic data in the US,” BPI Asset Management said.

On the local front, Philippine share prices ended the week in red with the composite index falling back below the 6,800-mark.

At the Philippine Stock Exchange, the benchmark index lost 24.23 points or 0.36 percent to close at 6,784.95. The broader all shares index also edged down 11.82 points or 0.29 percent to close at 4,064.19.

First Grade Finance Inc. managing director Astro del Castillo said the market slide was due to continued profit-taking.


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