Supreme Court order to prop up market — analysts

With the Supreme Court deciding late last Friday to uphold the legitimacy of the Arroyo administration, the stage has been set for a more buoyant stockmarket trading starting this week, analysts said.

"The overwhelming 13-0 vote by the High Court justices that put an end to the claim of deposed President Estrada that the successor Arroyo government is only on an acting capacity is the main catalyst the market has been waiting for," a trader from a local stockbrokerage firm said.

He added the situation could be likened to the market’s record breakout last Jan. 22 when President Gloria Macapagal-Arroyo formally assumed office following the people power-induced exit of the Estrada camp from Malacanang.

"The market may not react as much but expect trading to finally pick up steam after languishing in the doldrums the past weeks," he said.

Before the unexpected early release of the landmark SC ruling, the market has been heavily weighed down over the past two weeks by political concerns arising from the legal battle for legitimacy of the incumbent administration.

Although the 30-company composite index closed higher at 1,596.97 points last Friday from its Thursday’s ending, analysts said this was more a result of "technical correction" and not in anticipation of the SC decision.

A technical rally happens when share prices have fallen to attractively low levels enough to spark renewed buying or accumulation by so-called bargain hunters.

Index stocks or blue chip issues, the focus of attention in market rallies, will continue to be most vulnerable to bottom-feeding and profit-taking. Among those expected to remain in the shortlist of most active issues are PLDT, SM Prime, Meralco, the Ayala group, ABS-CBN, San Miguel, property firms, banking stocks, as well as the Canadian insurers Manulife and Sun Life.