Wait and see stance seen this week
MANILA, Philippines — Market investors will keep a close watch on President Duterte’s third State of the Nation Address (SONA), which he is set to deliver today.
In a report, F. Yap Securities said that as Duterte delivers his SONA, investors would wait for leads on various aspects.
“Equities investors will give extra attention on: sequel tax reform plan (specifically on corporate taxes, retention/removal of earlier fiscal incentives; renewable energy); pace of provincial project expansions under the Build Build Build agenda; and other issues covering the administration’s territorial issue with China, endo and the Bangsamoro Basic Law,” F. Yap said in a report.
Gauges were relatively unchanged during the week, with sessions limited within the 7,334 to 7,459 level.
The PSEi finished 7,399, less than a notch higher week-on-week.
There were gains in the property and industrials sectors.
Moving forward, F. Yap said investors would like to see if the key direction hasn’t changed, or may divert in light of the initial phase of the tax reform plan’s impact on inflation.
These measures, in turn, could affect the performance of listed companies.
“This will be crucial to listed companies’ capex rollout, including timing of budget preparation for large-ticket infra undertakings. As such, any hint to affirm this year’s growth prospects could invigorate appetite for equities, especially if these would lead to increased direct investments and job creation,” F. Yap said.
Aside from the SONA, another focus is the central bank’s next policy move, to arrest further weakness.
“For now, keep tab on trading opportunities as second quarter corporate earnings and industry developments unfold. Immediate support is 7,300 with resistance at 7,450 to 7,550 level,” F. Yap said.
- Latest
- Trending