Market uptrend seen to continue

MANILA, Philippines — The local stock market barometer has found some comfort above the 8,000 mark and is expected to continue doing so this week after it pierced the 8,300 territory last week.

Traders said the trend would continue unless major disruptors such as global or local jitters halt the prevailing momentum in the market.

In a commentary, market research portal 2TradeAsia.com said the Philippine Stock Exchange index (PSEi) is seen firming up above the 8,200 mark.

“We see the PSEi firming-up above 8,200, as excess liquidity finds its way into equities.  Reverting to our 8,500 target outlook at the start of the year, major inflection point is highly considered, if the latest uptrend is sustained,” it said.

“Immediate support is 8,200, resistance at 8,350 to 8,370,” it added.

Last week, shares roared to new highs, prompting the PSEi to cross 8,321.

Part of the boost stemmed from the move of the US Federal Reserve to retain its interest rate policy, even as it signalled the possibility for tightening toward the latter part of the year.

Here at home, the Bangko Sentral ng Pilipinas maintained its key policy rates and raised the inflation outlook for 2019.

Traders said the move of the Senate to pass the Duterte administration’s tax reform package also provided a major boost to the market.

“At the macro front, the second package of the Comprehensive Tax Reform Program was moved from the fourth quarter of 2017 to January 2018, to better focus on the implementation of the first round.  The mart closed 100 points up at 8,281, up 1.2 percent week-on-week led by holdings, up 2.6 percent.  Overall breadth favored pessimists, 103 to 99, on modest decline in average turnover at P7 billion.  Net foreign buying was likewise modest at P121 million,” 2TradeAsia said.

It said the market is absorbing the ripple effect of the first wave of the tax reform program, providing revenue sources to support government’s fiscal spending rollout plan.

However, geopolitical tension between the United States and North Korea, especially after the latter threatened to launch on an “unprecedented scale” a hydrogen bomb in the Pacific Ocean, continues to send jitters to investors.

For its part, the local stock market operator said it would continue to entice investors to put their funds in the bourse.

The Philippine Stock Exchange will hold a free stock market investing roadshow on Sept. 30 in Iloilo City.

The roadshow in Iloilo will feature talks from stock market practitioners on Investing Basics, Exchange Traded Funds, Dollar Denominated Securities, Investor Rights Protection and Online Trading, among others.

“As one of the most progressive areas in the Visayas, we believe that many of our Ilonggo kababayans based in Iloilo and in the Negros provinces will benefit from having a better understanding of the investing options available to them,” PSE president and chief executive officer Ramon Monzon said.