THE market may regain strength this week after the last minute sell-off Friday on account of the incident at Resorts World Manila which left 38 people dead, including the perpetrator, and 54 others injured.
“I think after the weekend, explaining what happened at Resorts World, I expect the market to rally from the drop and continue the consolidation due to the market softness last Friday,” Harry Liu, president of Summit Securities Inc., told The Manila Times on Sunday.
A lone gunman, who was identified by police as Jessie Carlos, 43, forced himself into the casino-hotel and entertainment complex Resorts World Manila early Friday, firing shots with an M4 automatic rifle and setting gambling tables on fire. The police rule out any links to terrorism.
“And the US market is also up,” Liu noted. “A factor that can spark the market … upward would be any good news on the crisis in Mindanao. We need to normalize the local peace and order situation,” he said.
“Tax reform is also one that can help boost the market if crafted properly for the benefit of the people and growth for the country,” Liu said.
The House of Representatives on Wednesday passed on third and final reading the first package of the Duterte administration’s tax reform package under the Tax Reform Acceleration and Inclusion (Train) bill.
Once passed into law, Train or House Bill 5636 exempts workers earning P250,000 and below a year from income tax. It raises the excise tax on petroleum products to P10 per liter from the previous P6.
Regina Capital Development Corp. Managing Director Luis Limlingan said there are several foreign events this week, including the European Central Bank’s latest monetary policy decision and the UK general election both happening on Thursday. The US non-manufacturing index will also be released on Monday.
“Locally, inflation will be out and if it creeps close to or above 4 percent, this will push the central bank to, perhaps, finally raise rates when they meet next week,” Limlingan said.
He noted immediate support would be at 7,820 on the PSEi, while resistance is at 8,000.
On Friday, the PSEI declined by 0.25 percent or 19.83 points to close at 7,907.66. The broader All Shares fell 0.30 percent or 14.19 points to 4,716.13.