The Philippine Stock Exchange
MANILA, Philippines—Local stocks are seen trading higher this week as investors bask in the good tidings coming from recent Philippine sovereign credit-rating upgrades and signs of resolution of the Greek fiscal crisis.
The main-share Philippine Stock Exchange index gained 3.33 percent last week to finish at 4,291.44 on Friday.
“There will still be some follow-through buying. The recent rating upgrades for the Philippines are definitely positive but it still remains to be seen if Greek leaders will be able to pass the needed austerity measures,” said PNB Securities deputy chief Manny Lisbona.
“The index will remain range-bound until there is more clarity in Greece and the European Union,” he said.
Maria Arlysa Narciso, an analyst at AB Capital Securities, agreed that the PSEi might move higher again this week with a little push from mining issues.
“However, the period by which these mining developments could have an influence over the index may not last long,” she said.
Philex last week led the surge in the mining index, rising 22.4 percent to a record P23.30. Narciso said this mining stock took a sudden leap after announcing more than $22 billion in copper and gold reserves at its Silangan project in Surigao del Norte.
“With all the uncertainties in the equities market, investors’ interest may shift to gold and other precious metals. This will play to the advantage of Philex,” Narciso said.
Narciso added that index heavyweights PLDT and Ayala Land might continue to serve as a cushion for the market to keep it from slipping. Technical indicators were positive for both stocks, she said. Despite a possible delay due to a hearing on PLDT’s acquisition of Digitel, the expectation was that this consolidation would push through and give PLDT a bigger market share.—Doris C. Dumlao