Market likely to sustain upward momentum

The Philippine stock market is expected to sustain its momentum this week on optimism surrounding the release of the country’s first quarter economic growth performance.

Following last week’s upbeat election-inspired stock market, the Philippine Stock Exchange index (PSEi) will attempt to maintain its upward trend and break through the 7,500 mark this week, analysts said.

“Upward surprises are seen, ahead of the release of first quarter 2016 gross domestic product as the Aquino administration marks the closing of its term this semester. More than the impact of macro results to corporate earnings growth, players will focus how listed firms would re-tool earnings outlook for the second half and onwards, as details on the incoming administration’s economic agenda are unveiled,” 2TradeAsia.com said.

Forecasts show the country’s first quarter GDP growth accelerated much faster than that of last year.

“The PSEi has recovered its poise since it breached a low of 6,208 in January this year, and a re-test of trouncing past 8,127 is in the cards. So long as momentum is maintained, the continuity of this ascending line could take the PSEi to 8,500, possibly even 9,000,” 2TradeAsia.com said.

The PSEi finished 6.4 percent higher last week compared to the previous week and was able to pierce through the 7,500 level during Friday’s session.

Net foreign buying stood at P453 million last week while turnover value was at P10.23 billion on the average.