LOCAL stocks are expected to move sideways this week as investors await the release of Philippine gross domestic product (GDP) data for the third quarter, due out on Thursday.
Analysts said a highly favorable GDP result could encourage strong buying and push the index to as high as 7,600 points by yearend.
BPI Asset Management said in a weekly market outlook that local shares are expected to trade sideways this week ahead of the GDP result this coming Thursday.
“We expect the local equities market to trade between 7,170 and 7,314 as the market continues to consolidate as the year-end approaches,” BPI said.
“Key catalysts to watch out for would be the third quarter Philippine GDP figure on the local front and the revised figure of the third quarter GDP in the US,” it added.
Jason Escartin, investment analyst at F. Yap Securities, said that the third quarter Philippine GDP data may include the impact of the bottlenecks in major ports, “although investors might be more considerate since delays have already been addressed.”
He said investors are keenly awaiting the GDP result for the third quarter “following the first quarter’s positive 5.6 percent and the second quarter’s 6.4 percent.”
“We also believe 2015’s GDP — the government is estimating it at 7.0-8.0 percent from 6.5-7.5 percent this year — has already been priced in as investors scout for other fundamental merits to diversify their regional portfolio weighting,” he added.
Meanwhile, Justino Calaycay Jr. of Accord Equities Capital Corp. said that the market’s performance toward the yearend will be influenced by macroeconomic factors such as the third quarter GDP result as well as other external market factors.
On Friday, the Philippine Stock Exchange index (PSEi) rose 7.23 points or 0.10 percent to 7,276.18 while the wider All Shares index added 7.21 points or 0.17 percent to 4,278.39.