Market set to rise above 7,000 points

Share prices may attempt to break the 7,000-point level this week despite the onslaught of recent typhoons that could dampen the growth of the domestic economy.

Analysts said the market was on an upward momentum as the number of daily COVID-19 cases in the country remained below 2,000 and as positive rate continued to decline. These factors could justify further easing of quarantine restrictions and reopening the economy.

While the devastation caused by typhoon Rolly and Ulysses could further slow down the recovery of the economy, analysts said investors were looking at the positive prospects for 2021 after release of third quarter earnings came to an end.

“The week’s close at 6,969.88 signals the bull momentum is at play with a break above the 7,000 levels. Expect some pullback towards the 6,700 levels. The next uptick should try the 7,300/7,500 levels,” BDO Unibank Inc. chief investment strategist Jonathan Ravelas said.

Regina Capital Development Corp. managing director Luis A. Limlingan said investors could also be weighing in the plan of US President-elect Joe Biden to place the country under weeks-long lockdown to stem the transmission of the virus.

The Philippine Stock Exchange Index last week breached the 7,000-point mark before closing at 6,969, up 5.7 percent week-on-week, ignoring the series of typhoon that battered many provinces. The typhoons’ damage could dampen economic growth in the fourth quarter of 2020.

The index rallied on positive news about the coronavirus vaccine announced by US pharmaceutical giant Pfizer.

All counters ended in the green, led by property which jumped 10.4 percent; mining and oil which climbed five percent; and financials which rose 3.6 percent.

The average daily value traded stood at P14.9 billion, while foreign investors turned net buyers for the week with an average net value of P1.3 billion from the previous week’s net selling of P180 million.

Weekly top price gainers included Ayala Land Inc., which advanced 12.8 percent to P39.50; SM Prime which climbed 11.5 percent to 38.75; and LT Group Inc., which rose 4.8 percent to P12.48.

Weekly top price losers were Jollibee Foods Corp., which declined two percent to P193.20; and Integrated Microelectronics Inc., which dipped one percent to P7.17.

Meanwhile, Wall Street finished Friday on a high note, shrugging off concerns over the surge in Covid-19 cases and new pandemic restrictions that threaten to slow the US economy.

The benchmark Dow Jones Industrial Average rose 1.4 percent to close at 29,479.81.

The broad-based S&P 500 also added 1.4 percent to 3,585.15, a new record, while the tech-rich Nasdaq Composite Index climbed 1.0 percent to 11,829.29.

“Festering concerns regarding the implications of the persistent surge in new Covid-19 cases also had a hand in the bumpiness this week,” Charles Schwab investment bank said, adding that “The earnings front continued to paint a positive picture.” With AFP