Share prices are expected to test the 9,000-point level again this week as investors position ahead of the release of the fourth-quarter GDP figures Thursday.
The government earlier projected a gross domestic product growth rate of between 6.5 percent and 7.5 percent for the full of 2017.
COL Financial research head April Lee Tan expects the index to end the year at 9,300 on the robust outlook of the economy, especially with the passage of the first package of the tax reform program.
Tan said the tax program, which enables the government to spend on much needed infrastructure projects, gave investors more confidence on the Philippine economy registering a 7-percent to 9-percent growth this year.
However, Tan cited the risks brought about by the passage of the tax reform plan, including higher than expected inflation rate, which could dampen consumer spending, and wider budget deficit, especially if the government failed to collect taxes against a programmed spending.
Tan said the market’s current level haf already priced in the positives and that a technical correction could be in the offing before the market resumed its upward trend.
The bellwether PSEi last week ended at 8,915.92, up 1.2 percent from the previous week’s close, while the broader All Shares Index climbed 1.03 percent to close at 5,151.07.
Except for the financial index which declined 1.6 percent as two banks—Bank of the Philippine Islands and Metropolitan Bank & Trust Co.—reported stock rights offering plans, all other indices ended in the green.
The industrial index advanced 3.4 percent, mining and oil by 2.34 percent, holding firms by 1.65 percent, services by 1.2 percent and property by 0.4 percent.
Foreign investors were net buyers by P2.85 billion, while average daily value traded stood at P8.5 billion from the previoud week’s average of P7.5 billion.
Weekly top price gainers were Shakey’s Pizza Asia Ventures Inc., which rose 11.6 percent to P15.70; Megawide Construction Corp., which climbed 8.7 percent to P19.50; and LT Group Inc., which gained 7.9 percent to P23.
Weekly top price losers were Metrobank which declined 8.6 percent to P110.20; Robinsons Land Corp., which dropped 5 percent to P20; and 2GO Group Inc., which fell 4.3 percent to P21.20.
Global stock markets, meanwhile, rose on Friday, with major Wall Street indices ending at all-time records, as investors shrugged off a looming shutdown of the US government.
The S&P and Nasdaq both finished at all-time highs, while the Dow also gained. Leading bourses in Europe and Asia advanced, while the dollar recovered some of its losses from the prior session against the euro. With AFP
“Investors don’t appear particularly bothered about the prospect of a government shutdown, with the assumption being that (a temporary spending bill) will eventually be signed and any economic impact will be minor or non-existent,” said Craig Erlam, senior market analyst at trading firm OANDA.
Congressional Democratic leaders met with President Donald Trump at the White House early Friday afternoon to try to avert a shutdown as a midnight deadline loomed for the Republican-controlled Senate to approve a new funding bill.