PHILIPPINE shares are likely to trade higher this week following a holiday on Monday, analysts said, on account of positive economic data and earnings results.
“[W] may see the market creeping upward as economic factors like all this news that we see — positive earnings, GDP, no negative [events], and the peso hovering quite well — so I feel the market … may try to be aggressive,” Summit Securities, Inc. President Harry Liu said.
The Philippine economy grew by 6.5 percent in the second quarter, the government reported last Thursday, up from the 6.4 percent recorded in the first three months of the year. Higher government spending was said to be a primary driver.
Online brokerage firm 2TradeAsia, in a note, said the market would take heed of consumption and state spending results.
“This could prompt seasoned investors to flock towards alternative assets (precious and base metals) and select commodities (e.g., construction-related), given the near-term view of higher raw material prices,” 2TradeAsia said.
Likewise, bets are on that growth could hit 6.8 to 7 percent this year on the expected legislative approval of the government’s Tax Reform Acceleration and Inclusion (TRAIN) program.
“Within a shortened four-day trading session, equities players will heed the declaration of cash dividend from PLDT, Inc. (P48/share) and Manila Electric Co. (P4.489 reg., P4.436/share special) this week, in the absence of other market leads,” the brokerage firm added.
“Volumes could thin however, with the start of the Chinese ghost month (expected end on 19 September), with majority on cautious mode over political headlines. Trade selectively within range. Immediate support is 7,030, resistance 8,100.”
On Friday, the bellwether Philippine Stock Exchange index lost 56.02 points or 0.69 percent to settle at 8,016.73. The wider All Shares declined 26.05 points or 0.55 percent to finish at 4,734.84.