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Market seen trading above 8,000

Share prices are expected to continue to trade above the 8,000-point level on positive sentiments following the separate decisions of the US Federal Reserve and Bangko Sentral ng Pilipinas to keep rates unchanged.

Online brokerage firm 2TradeAsia said unchanged interest rates should keep borrowing costs tame and support improved capital expenditure spending.

“This should prod investors to scout for investment opportunities possibly in condominium units, that can be leased out, affordable housing even franchising/store operations,” 2TradeAsia said

With the index closing firmly above 8,000 points, Papa Securities trader Gabriel Jose Perez said the next resistance should be the area the recent highs at 8,200

“Further net foreign buying in the coming days, as well as more surges from the major US indices could fuel this added optimism,” Perez said.

The Philippine Stock Exchange Index last week advanced 2.76 percent to 8,013.42, while the broader All Shares Index climbed 2.1 percent to 4,913.3. The last time  the PSEi reached the 8,000-point level was on Feb. 13, 2019.

All sectoral indices registered week on week gains, led by property rose 3.6 percent, followed by holding firms which advanced 3.5 percent, and mining and oil which gained 2.5 percent.

The services, industrial and financials also climbed 1.9 percent, 1.57 percent and 1.05 percent, respectively.

Foreign investors were net buyers by P1.56 billion, while the average daily value traded stood at P6 billion from the previous week’s average of P8.5 billion.

Weekly top price gainers were Century Properties Group Inc., which rose 14.6 percent to P0.55; LT Group Inc., which increased 8 percent to P17.28; and Filinvest Development Corp., which gained 7.2 percent to P15.98.

Weekly top price losers were Philex Mining Corp., which fell 5.5 percent to P3.77; Manila Water Co. Inc., which declined 5.2 percent to P24.65; and San Miguel Food and Beverage Inc. which dropped 3.3 percent to P103.

Meanwhile, worries about economic growth prospects hit global stock markets on Friday, causing sharp price drops on both sides of the Atlantic.

In bloodletting on Wall Street, US stocks suffered their worst day since early January.

The closely watched “yield curve” flashed a warning sign that a recession could be looming while monthly US, French and German manufacturing indices all fell—rattling investors who were already uneasy after this week’s surprisingly weak outlook from the Federal Reserve.

“A series of worse-than-expected economic releases from Europe have sounded the alarm bell not just for the bloc, but also the global economy, by providing further evidence of a worldwide slowdown in economic activity,” said XTB analyst David Cheetham.

The so-called yield curve, which tracks the spread between short- and longer-term rates on US Treasury bonds, briefly inverted on Friday, with yields on three month bonds falling below those for 10-year notes—the first time this had happened since before the global financial crisis in 2007. With AFP

Topics: stock market , Philippine Stock Exchange , PSE , Philippine Stock Exchange Index , PSEi
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