SHARE prices will likely trade higher this week given the looming end of ghost month and upbeat fiscal and corporate developments, an online brokerage firm said.
“The Treasury bureau’s latest T-bill auction was 3.5 times oversubscribed,” 2TradeAsia said, noting that bids had hit P52 billion versus the P15-billion float.
It added that an “extra boost” could come from last week’s news of the expected completion of an Energy Development Corp. tender offer, the sale of a stake in Bloomberry Resorts Corp., International Container Terminal Services Inc.’s Treasury share sale and Melco Resorts and Entertainment (Phils.) Corp.’s bond redemption plan, among others.
“All these coincide with the end of the ‘ghost month’ period, which should improve investors’ appetite to accumulate,” 2TradeAsia said.
Ghost month, which this year started on August 22 and will end on September 19 based on the Chinese calendar, is a period where investors traditionally hold off from big-ticket plays.
On the global front, investors are also expected to be looking for the international community’s reaction to the latest North Korean missile test.
Domestically, investors will be watching out news on the government’s threat to declare martial law nationwide.
“Having breached as much as 8,180 however, local equities could re-test trouncing 8,300 with strong support pegged at 8,000. The macro driver is still on the Philippine’s growth story and solid support on President Rodrigo Duterte’s team,” 2TradeAsia said.
The Philippine Stock Exchange index recovered from intra-day losses to close at a fresh high on Friday. It gained 0.44 percent or 35.94 points to finish at 8,180.85, the highest since hitting 8,144.91 on Thursday.
The broader All Shares rose 0.42 percent or 20.42 points to settle at 4,836.33.