New Year lift seen for stock market
Credit to Author: ANGELICA BALLESTEROS, TMT| Date: Sun, 30 Dec 2018 16:12:28 +0000
THE stock market could trade higher this week as investors reposition portfolios ahead of the release of inflation and economic growth data.
Eagle Equities Inc. research head Christopher Mangun, in a market comment, said he expected “a lot of optimism” going into the first trading week of 2019, with market players eager to see a recovery on expectations of lower December inflation and a higher gross domestic product (GDP) growth.
Last month’s inflation result will be announced this Friday while Q4 and full-year GDP data is expected to be announced before the end of January.
Above-target inflation for most of 2018 and subsequent Bangko Sentral ng Pilipinas (BSP) interest rate hikes dampened investor optimism and a sustained easing from November could lift sentiment, analysts have said.
The BSP last week issued a 5.2-6.0 percent forecast for December, still significantly higher than the 2.0-4.0 percent target but an improvement from the nine-year high of 6.7 percent in September and October.
“We may see more … investors gain confidence and get back into this market. It may as well bring back foreign money which will be a big factor to the market’s rally,” Mangun said.
Looking ahead, Mangun said that firms belonging to the property and banking sectors could see share prices pick up and also post stronger revenues higher interest rates.
“[T]he increase in interest rates has benefitted the banks as loan growth has not drastically slowed despite increases,” he added.
The benchmark Philippine Stock Exchange index (PSEi) closed 2018 in the red, falling 0.22 percent or 16.64 points on Friday at 7,466.02 Friday.
The wider All Shares inched up by 0.08 percent or 3.72 points to finish the year at 4,517.85.
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