Financial markets still on break for Labor Day
The long weekend break in the stock market continues today as financial markets remain closed in observance of Labor Day.
Last week, the Philippine Stock Exchange index gained 82.85 points or 1 percent to close on Thursday at 7,661.01.
Friday was a nonworking holiday as the Philippines hosted the Association of Southeast Asian Nations (Asean) Summit.
For the remainder of the second quarter, First Metro Investments Corp. (FMIC) and University of Asia and the Pacific (UA&P) sees the volatility of the stock market being tested as fund flows to emerging markets trickle back.
The three key catalysts for the second quarter are the stream of first quarter corporate earnings results, the announcement of the first quarter Philippine gross domestic product (GDP) and the semi-annual rebalancing of MSCI, whose indices are widely tracked by global investors.
The results of the MSCI semi-annual rebalancing review will be announced on May 15 while the Philippine government will release the first quarter GDP report on May 18.
Article continues after this advertisement“The economy should expand by 6.5 to 7 percent in first quarter 2017 with exports providing the new boost to robust domestic demand. Strong consumer spending and sustained manufacturing sector activity will continue to propel domestic demand, bolstered by OFW (overseas Filipino worker) remittances. Inflation should stabilize at 3.5 percent up to the third quarter, thanks to easing food prices and crude oil prices, reeling from abundant supply and more oil from shale,” FMIC-UA&P said in its latest joint publication, “The Market Call.”
Meanwhile, first quarter corporate earnings results have started coming in.
