By Madelaine B. Miraflor
While the market observes how the peace and order issues in some parts of the country would weigh in the market in the next few days, local investors are expected to keep track on the administration’s tax reform plan as well as its infrastructure push.
Online brokerage 2TradeAsia.com said investors will remain optimistic on the administration’s tax reform plan and momentum leading to its “Build, Build, Build” agenda.
“Our local bourse remained calm amid tensions down South, particularly in Marawi, which allowed President Rodrigo Duterte to declare martial law in Mindanao. Investors remained vigilant and steadfast parking their funds in equities, aided mainly by the Philippines’ sound fundamentals,” 2TradeAsia said.
It also said that the foreign inflow may continue with Moody’s recent move to downgrade China’s rating, citing heightened credit risks in the world’s second biggest economy.
“Also, the maiden offering of Eagle Cement Corp. (EAGLE) and Cebu Landmasters, Inc. (CLI) are seen to draw in improved liquidity,” 2TradeAsia said. Last week, the Philippine Stock Exchange index (PSEi) climbed 100 points to close at 7,867, up 1.29 percent week-on-week.
“The local benchmark showed resilience despite Maute Group’s attack in Marawi City which was followed by President Duterte’s declaration of martial law in Mindanao,” 2TradeAsia.com said.