Positive news about the government’s tax reform program and North Korea could push the stock market higher this week, analysts said.
“The market right now is on its way up because volatility has been low. The investing public is looking forward for more tax reform [developments],” Summit Securities President Harry Liu said.
“It’s on an uptrend, basically brought about by tax reform. This tax reform is needed and if drafted properly, it will bring economic progress to the country,” Liu said.
A Senate committee last week approved its version of the tax reform bill, which will now be debated by the entire chamber. The House of Representatives passed its own measure earlier this year and the government hopes that a reconciled bill will be signed into law before the year ends.
Brokerage firm 2TradeAsia, meanwhile, said fresh sanctions imposed against North Korea could spur a move to mining and oil assets.
Developments after Pyongyang threatened to test a hydrogen bomb in the Pacific, ratcheting up tensions, would be among the wildcards to “watch out for this week,” 2TradeAsia added.
Amid ongoing geopolitical concerns, brokerage firm says it expects the Philippine Stock Exchange index to firm up above 8,200.
The benchmark index, which recently hit successive all-time highs, fell by 0.07 percent or 5.59 points on Friday to finish at 8,281.27. The wider All Shares also fell, by 0.14 percent or 6.61 points to 4,878.39.