Local stocks are seen to trade sideways this week, albeit on a positive bias, following a failed attempt by a group of rebel soldiers led by Sen. Antonio Trillanes and Brig. Gen Danilo Lim to call for an uprising against the Arroyo administration.
Philippine Stock Exchange president Francis Lim expects the stock market to trade on a positive note this week given the swift and peaceful resolution of the six-hour standoff at The Peninsula Manila in Makati City, which was started by a court hearing walkout of renegade soldiers facing coup charges.
“Its going be business as usual when trading resumes on Monday. The quick resolution of the crisis is going to have a positive effect on the stock market. The continued growth of the economy, the recent recovery of the agriculture sector plus the continued remittances of overseas Filipino workers should boost market sentiment,” Lim said in a television interview.
President Arroyo, who rose to power after the military turned against her predecessor, Joseph Estrada, in 2001, has survived two previous coup plots
The government reported last week that the economy expanded by a robust 6.6 percent in the third quarter of the year — well on track to beating it’s 6.1-to 6.7- percent growth target for 2007 — on the back of higher consumer spending and increased farm output.
Analysts said the market will take its cue from developments overseas. Hopes have been growing that US financial companies may be starting to recover from the credit crunch following a report that the US economy grew at 4.9 percent in the third quarter, the best performance in four years.
Last week, the PSEi closed 41.55 points or 1.17 percent higher at 3,578.55