Stocks build up momentum
Iris Gonzales (The Philippine Star) - May 8, 2017 - 12:00am

MANILA, Philippines - The stock market is expected to build momentum this week on optimism over earnings data and last year’s economic performance.

The benchmark Philippine Stock Exchange index (PSEi) is expected to rise up to 7,950 with immediate support at 7,750.

Sought for comment on the index performance, newly elected Philippine Stock Exchange president Ramon Monzon said it’s really difficult to say whether or not the trend would continue.

Last week, equities players were on high spirits, on optimism over earnings data in step with a 6.9 percent GDP growth in 2016  plus the US Fed’s status quo on its rates during the week.

“The PSEi rallied 181 points at 7,841, up 2.36 percent week-on-week,” stock portal 2Trade said.

It said mining stocks gained momentum with the rejection of Regina Lopez as environment secretary.

Not surprisingly, value turnover remained robust at P6 billion or up two percent, with gainers leading losers, 88 to 70. 

Foreign funds plowed back into the local mart, with net foreign inflows at P397 million.

“With the Fed on hold over its benchmark rate, this week’s highlight is on France, specifically on its presidential race tally.  A Macron-finish could help boost sentiment, and  further lessen forex volatility, as exit overhangs for the euro block is lifted. Meanwhile, the broad picture rests on fiscal spending drives, specifically on US tax cuts that will support increased consumer and investment spending,” 2Trade said.

On the local front, April inflation was at 3.4 percent, within the central bank’s estimate and may help support expectations for the Monetary Board to keep rates steady in its meeting on May 11.

“Although most consumer-related plays are already trading at premium vis-à-vis the market, upsides will depend on tax reform details under Dutertenomics, which could positively impact disposable income and consumption.  The same might also be the landing pad for listed companies’ capex program, especially with the rollout of infra initiatives under the ‘Build, Build, Build initiative,” 2Trade also said.

PHILIPPINE STOCK EXCHANGE INDEX
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