Market seen to rise this week

MANILA, Philippines - Local stocks are expected to be on an upward spiral this week, aided by end of the quarter window dressing and improving market sentiment with the expected smooth transition of government.

Last week, the main composite index closed 16.98 points, or 0.51 percent, higher at 3,352.46.

“Ending the week on a good note, the index is still poised to reach new heights next week, which will be shortened due to the holiday on June 30, 2010,” said Prince Anthony Yeung of AB capital Securities.

The inauguration of President-elect Benigno “Noynoy” Aquino III is set for Wednesday June 30, which has been declared a holiday.

“The country is looking forward to a new administration that is keen on reducing corruption...generally, the local environment has encouraged the upward movement of the local stock market. The local economy is seen to perform better than initially expected as the El Niño is over, pump-priming by the government boosted first quarter growth, and remittances continue to be strong,” Yeung said.

The PSEi recorded a new year-to-date high at 3,357.88 last Monday but plummeted in the succeeding sessions due to lack of fresh leads.

Semirara Corp., the coal mining unit of the Consunji family, had a strong run last week, hitting as much as P92 prior to dropping Friday to P85.50 each share on profit taking. 

Metrobank likewise gave a spectacular performance, rising 9.57 percent or P5.50 to end at P63 apiece.