PHILIPPINE STOCKS may sustain their climb this week, supported by continued bargain hunting, but renewed tensions in the Middle East and the lack of fresh leads could keep investors cautious. On Friday, the Philippine Stock Exchange index (PSEi) jumped by 1.01% or 62.83 points to close at 6,286.
PHILIPPINE STOCKS may sustain their climb this week, supported by continued bargain hunting, but renewed tensions in the Middle East and the lack of fresh leads could keep investors cautious.
On Friday, the Philippine Stock Exchange index jumped by 1.01% or 62.83 points to close at 6,286.70, while the broader all shares index rose by 0.67% or 22.78 points to end at 3,393.34. Week on week, the PSEi rose by 98.67 points from July 3’s finish of 6,188.03.
“Tamer June inflation buoyed sentiment, enabling the PSEi to finish 98 points up at 6,286. This was despite tempered global GDP outlook from the IMF , and renewed geopolitical conflict in the Middle East,” F. Yap Securities said in a market note.
“The local market has shown positive momentum in the last two weeks, climbing a total of 3.53%. Support from foreign investors was also seen recently, with the last six trading days all posting net inflows with a total of P3.76 billion,” Philstocks Financial, Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.
“However, trading remains thin with value turnover averaging P5.55 billion last week, implying that the rally is not backed by strong conviction. ” For this week, bargain hunting may continue to support the local bourse, although lingering downside risks and the lack of a clear catalyst could limit gains, he said.
“The situation in the Middle East remains a concern. As to whether the US and Iran will reach a deal despite strong points of contention from the latter’s nuclear program to the Strait of Hormuz remains uncertain… A re-escalation of tensions which could cause oil prices to rebound may weigh on the local market. ” This could add to domestic inflation pressures, he added.
“Inflation still poses a threat. While the inflation rate is declining, it remains above the government’s 2%-4% target, implying the possibility of further tightening by the BSP . Upside risks to inflation including global oil price volatility, El Niño, and inflation expectations also remain on the table. ” “June inflation delivered a welcome step in the right direction, but sticky core pressures and geopolitical oil risks mean the BSP tightening cycle is far from over.
Oil prices staged a strong bounce last week , which threaten the PSEi’s station above 6,200,” F. Yap Securities said. Investors are also expected to focus on second-quarter corporate results, with average earnings per share projected to decline by 2%, it added.
“Chart-wise, the market’s positive momentum is reflected by its position above its 10-day, 50-day, and 200-day exponential moving averages. ” —
Please follow us on Google to support usPhilippines Latest News, Philippines Headlines
Similar News: You can also read news stories similar to this one that we have collected from other news sources.
Money trail, intent hinder PHL plunder convictions - BusinessWorld OnlineRECENT HIGH-PROFILE plunder cases before the Sandiganbayan have underscored the difficulty of securing convictions under the country’s anti-corruption laws, with analysts saying prosecutors continue to struggle to trace illicit funds and prove criminal intent beyond reasonable doubt.
Read more »
Congress urged to scrap standby fund - BusinessWorld OnlineUNPROGRAMMED APPROPRIATIONS (UA) should no longer receive funding while their constitutionality remains pending before the Supreme Court (SC), House Senior Deputy Minority Leader Leila M. de Lima said after the Cabinet approved the proposed 2027 National Expenditure Program (NEP).
Read more »
Energy dep’t resumes waste-to-energy auction - BusinessWorld OnlineTHE Department of Energy (DoE) said it resumed activities to mount the special green energy auction (GEA) round for waste-to-energy (WTE) projects after a brief suspension to revise the terms of the auction.
Read more »
Go wants more GOCCs to join ‘billion-peso club’ - BusinessWorld OnlineTHE Department of Finance (DoF) said it hopes more government-owned and -controlled corporations (GOCCs) join the list of state-owned companies that remit over P1 billion worth of dividends to the national Treasury next year. “We look forward to more GOCCs joining the Billionaire’s Club. Twenty next year,” Finance Secretary Frederick D.
Read more »