Market appears upbeat

MANILA, Philippines–THE local stock market is seen to be in an upbeat mood when it resumes trading this week as investors assess opportunities for the year ahead.

In the last trading day of 2011, the Philippine Stock Exchange index gained 35.33 points, or 0.81 percent, closing at the session’s high on the back of yearend window-dressing activities.

Joseph Roxas of Eagle Securities said the upbeat mood at the end of 2011 should extend to this week.

The PSEi’s immediate target is 4,400, Roxas said. But for the rest of the year, he said the index would break into the 4,800-5,000 levels.

AB Capital Securities analyst Gregg Adrian Ilag said sentiment next week would be influenced by several factors, such as the non-farm payroll data in the United States and Italy’s 10-year bond sale.

“On the local scene, we continue to see the Philippine Stock Exchange index trading at a tight range as we wait for further developments from Europe. Short term support is at 4,303, which is near the 30-day simple moving average. Resistance is at 4,372,” Ilag said.

AB Capital Securities is optimistic on conglomerate and energy shares, saying these stocks would be much favored throughout 2012.

“They have large domestic exposures and favorable business environments. We think that their earnings will be less affected by events abroad,” Ilag said.

Starting today, the stock market will trade until 3:30 p.m. Doris C. Dumlao