Locals to dominate trading this week

Share prices are expected to take immediate support at 8,370 to 8,400 and resistance levels from 8,500 to 8,580, analysts said.

Foreign fund managers are not expected to be active which means that local participants are likely to dominate this week’s short trading window.

“With foreign fund managers on holiday mode, local participants might dominate the week’s three-day trading session focusing mostly on second-and third-tier shares. Any weakness in select large-cap stocks would be a good window for players to move in, especially those with good stories to unfold next year,” according to 2TradeAsia.com.

It said market investors should look for stocks that are marked down now but provide good dividends.

“Spot for good entry windows by seizing on weakness to position in shares that provide dividend play and promising capital appreciation,” it said.

In all, market investors welcomed President Duterte’s Tax Reform for Acceleration and Inclusion (TRAIN) package.

“As the news of the TRAIN gets finally absorbed, anticipate some fund managers to lock-in on rallies until the net benefit factors gets known,” it said.

The TRAIN would supposedly help the Duterte administration achieve its Build Build Build infrastructure program as it would increase taxes on fuel, vehicles and sugar-sweetened beverages and expand the value-added tax (VAT) base.

With TRAIN already in place, traders said the market would now be watching for its specific impact on the economy as it is implemented next year.

Fund managers will be looking at the impact of TRAIN on specific sectors of the market as well.