President Marcos’ first State of the Nation Address (Sona) might deliver a needed jolt to the local stock market after trading activity receded in the past week.
The benchmark Philippine Stock Exchange index (PSEi) recorded a weekly gain of more than 1 percent to 6,263.39 even as trading interest continued to ebb away.
PSE data showed the average daily turnover for the week dropped to P4.5 billion from the previous period’s P4.9 billion.
Investors searching for new catalysts might look toward the Sona for clues on how the administration would address rising consumer prices that are threatening growth targets.
“Anything to address inflation, and boost economy would be key in the Sona,” Luis Gerardo Limlingan, head of sales at stock brokerage house Regina Capital Development, told the Inquirer over the weekend.
Apart from the recent surprise 75-basis point interest rate hike by the Bangko Sentral ng Pilipinas, there have been few domestic market-moving developments to drive trading activity.
There was also growing unease due to the recent spike in COVID-19 cases. Metro Manila will remain under the lowest pandemic alert level until the middle of August.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp., said investors were on a “wait-and-see stance” given the lack of clear policies to address issues such as inflation, debt management, jobs and food security.
“Sona is a potential catalyst/market-mover as the markets are awaiting more details of the new administration’s economic and social agenda,” Ricafort told the Inquirer.
“More importantly, the markets would then wait for actual delivery of results/tangible accomplishments for the first 100 days, six months, and one year,” he added.
Ricafort said the PSEi’s immediate resistance would be at 6,300 up to 6,500 while the critical support level remained at 6,000. —Miguel R. Camus, INQ