June 17, 2019
THE stock market is expected to trade higher this week amid hopes of economic growth supported by improved fundamentals, according to analysts.
In a market comment over the weekend, Eagle Equities Inc. research head Christopher Mangun said he expected the market to pick up on hopes of economic growth supported by listed firms’ second-quarter earnings, improved economic fundamentals and higher government spending after the delayed passage of the 2019 budget.
“The last two weeks may have been boring, but the next two weeks are going to be interesting and I will not be surprised if we see this market explode to the upside,” he added.
In the spotlight this week is the Bangko Sentral ng Pilipinas’ Monetary Board meeting, but Mangun said he did not expect a reduction in interest rates, given that the policymaking board just reduced key rates by 25 basis points (bps) in their last meeting in May, and reserve requirement ratios had just been cut by 100 bps.
“However, if they do reduce rates again…that may be an incentive for investors to increase positions in the market,” he added.
Overseas, online brokerage firm 2tradeasia.com said it expected the attention of market players to shift to oil prices, as members of the Organization of the Petroleum Exporting Countries (OPEC) are mulling over continuing supply cuts.
Last Friday, the benchmark Philippine Stock Exchange index dropped by 0.77 percent or 61.56 points to close at 7,990.20, while the wider All Shares declined by 0.59 percent or 29.21 points to finish at 4,884.91.
Credit belongs to : www.manilatimes.net