Market seen to start week on positive note

MANILA, Philippines - The local stock market is expected to open on a positive note after global stocks rallied on stronger-than-expected US jobs report and renewed hope euro zone leaders will stem the debt crisis.

World markets surged higher after 163,000 jobs were created in the US last month, keeping alive the hope of further support for the economy from the Federal Reserve following months of sluggish hiring.

Analysts, however, still see the market trading in a lackluster manner with the onset of the ghost month.

Last week, the Philippine Stock Exchange index (PSEi) gained 1.3 percent to close at 5,285.91, led by the financial and property counters which grew 3.78 percent 2.55 percent, respectively.

Erstwhile illiquid stock Tanduay Holdings surged 119 percent week-on-week to close at P10.88 after it announced it would become the holding firm for all the liquor, real estate, tobacco, bank, and airlines assets of taipan Lucio Tan, the nation’s second richest man with an estimated wealth of $4.5 billion.

Tanduay hit the price ceiling for two consecutive days following the announcement, zooming to as much as P14.66 per share.

Among the banking sector, Security Bank took the lead, rising 10.3 percent. It was followed by Metrobank which rose 5.1 percent to P99.75 and Bank of the Philippine Islands 4.1 percent to close at P75.05.

Other notable gainers include Ayala Land which saw its share price move up by 5.2 percent and Metro Pacific Investments Corp.

“With no upcoming external catalyst, the local market will still bank its performance on the first half local earnings report,” said AB Capital Securities.

Investors are also awaiting the release of the July inflation report and the consumer price index (CPI) which will give an insight on how the country will fare on its second quarter economic growth.