Market seen advancing this week

MANILA, Philippines —  The stock market may still have the strength to continue with its rally this week given the strong inflows last week, traders said.

Philippine Stock Exchange chairman Jose Pardo said that the market is doing well and with plans to introduce new products, the momentum is expected to be sustained.

Piper Chaucer Tan of Philstocks Financials said the benchmark index may still rally past the 8,000 mark. 

“Our outlook for next week is that the market may continue to rally past the 8,000 level backed by above average volumes and value for the past two weeks,” Tan said.

He said the market has already priced in the lethargic gross domestic product data released last Thursday. 

“But now we see the market is forward looking. There is still upside on the data despite the high inflation and monetary tightening, the Philippine economy still produced above the six percent gross domestic product growth for 2018,” Tan said. 

Moving forward, he said the upside of the market may come from the slower inflation, the election spending which may boost consumption, the peso appreciation, and the return of the foreign funds. 

F. Yap Securities said the week will mark fund managers’ month-end portfolio closing for January. 

“Also, markets would soon be pricing-in the week-long Chinese Lunar New Year break,” F. Yap said.

In all, F. Yap said that upsides may be considered, pending the outcome of US-China trade talks before end-March’s deadline.

“Immediate support is 7,950 to 8,000, resistance at 8,100 to 8,150,” it said.