Philippines share prices are expected to consolidate this week, with investors pausing after a rally that pushed the market to eight-month highs, dealers said.
They said the tone is much more positive now as foreign investors appear more confident in the government after it implemented a new sales tax at the beginning of the month, a key measure in remedying a chronic budget deficit.
The move has bolstered investor confidence, especially among foreign investors, and this has allowed the market to move ahead sharply.
Now, however, it may be time to pause before a further advance is attempted.
For the week to November 25, the Philippine Stock Exchange composite index advanced 26.12 points or 1.26 percent to 2,106.10 points.
Average daily was 696 million shares worth 1.15 billion pesos (21.13 million dollars) compared to the previous week's 921 million shares worth 902 million pesos. DA Market Securities president Nestor Aguila said the market consolidated Friday around 2,100 points and this would likely continue this week.
He said the positive news such as the peso's gains against the dollar, easing oil prices and the government's improving fiscal performance have all been priced in by investors.
Overall sentiment remains positive, Aguila said, but the market is likely to face resistance as it moves higher.
Comments
Comments are closed.