Market seen going up

MANILA, Philippines - Local stocks may move upward this week as the market enters a quarterly window dressing period.

“Over-all, we expect the market to continue to trade generally sideways, with a very slight positive bias while remaining sensitive to negative developments abroad, particularly as it impacts on oil prices,” said Jun Calaycay of Accord Capital Equities.

Last week, the PSEi gained 35.93 points or 0.94 percent to close at 3,875.81 on the back of the US markets’ advance. Among the stocks that caught investors’ attention were Leisure & Resorts World Corp. and Digital Telecommunications which closed at P9.50 and P1.55 each share, respectively.

“If it weren’t for developments such as that of DGTL and LR, the market would have been really slow. It is evident that investors are staying on the sidelines keenly awaiting situations to further unfold,” said AB Capital Securities’ Prince Anthony Yeung.

Yeung said investors are expected to trade lightly while looking out for stocks with specific plays or stories.

Investors will continue to monitor Japan’s nuclear power plant situation and the Libyan crisis which have become top concerns of investors around the world.

On the homefront, concerns will revolve around inflation (normally reported on the fist week of the month) and government’s anticipated revision of its targets.

After almost two years of holding interest rates at record lows, the Central Bank finally relented and raised interest rates by 25 basis points.

“With other regions raising their own interest rates and inflation moving faster than initially expected, the BSP found it prudent to raise interest rates last Thursday. The move is expected to be the first in a series of rate hikes this year. February inflation came in at 4.3 percent, a number that is expected to increase in the coming months.