MANILA, Philippines - The local stock market is expected to continue its upswing this week, picking where it left prior toTropical Storm Mario’s onslaught in Luzon.
Trading in the Philippine Stock Exchange (PSE) was suspended for the second time this year on Friday following heavy rains and flooding brought by the tropical storm.
This week, analysts believe that the recent move and non-move of China and US central banks on stimulus will help rekindle the attractiveness of equities even despite the disruption on Friday.
Astro del Castillo, managing director of First Grade Finance Inc., said Tropical Storm Mario which caused major flooding in several areas in Luzon may likely affect the market negatively, but it will not be felt until data on the damages comes out.
“Prior to the storm there is a buying momentum so I think that will continue. Asian market is up so I think market will catch up with regional markets,” Del Castillo said.
The Philippine Stock Exchange index (PSEi) was on a three-day winning streak when it closed at 7,287.29 last Thursday.
The local stock barometer increased 1.2 percent week-on-week powered primarily by the financial and industrial sectors which gained 2.1 percent and 1.8 percent, respectively.
“With the third quarter season coming to a close, market participants will revisit capex rollout, plus cash flows that will be utilized for progressive initiatives next year,” said F. Yap Securities investment analyst Jason Escartin.
Escartin placed immediate support at 7,200 and resistance at 7,350 to 7,400.