Analysts expect the US Federal Reserve meeting to be a major factor influencing the movement of global and local stocks this week.
Investors expect the US Fed to announce a rate hike on Dec. 14, but analysts would also watch for hints on the US Fed’s policy move next year.
“With roughly 97-percent chance of a Fed rate hike on 14 December, investors seem to have gained confidence with the Fed’s intention to hike rates sooner rather than later. This would help investors and fund managers realign portfolios with the new level of cost of money and prepare an equity strategy before 2017 starts,” online brokerage company 2TradeAsia.com said.
2TradeAsia.com said despite the developments here and abroad, the Philippine stock market could finish 2016 on a positive note, as the outlook on the domestic economy remained positive.
Bangko Sentral ng Pilipinas reported last week that the consumer confidence index recorded an all-time high of 9.2 percent in the fourth quarter, from third-quarter’s 2.5 percent.
“Optimists outpaced pessimists over government’s latest policy in ending contractualization, salary increases, employment opportunities and better government services. With the yuletide season, consumers see no reason to be negative about the last quarter of the year amid expectations of higher remittances and disposable income,” 2TradeAsia.com said.
The Philippine Stock Exchange index, the 30-company bellwether, climbed 2.3 percent last week to close at 7,043.16 on Dec. 9, while the all-share index gained 1.5 percent to 4,229.39.
Except for mining and oil which declined 0.7 percent, other subindices were on an upward trend led by property which jumped 4.2 percent, services which rose 2.6 percent and financials which advanced 1.1 percent.
Foreign selling continued as overseas investors were net sellers last week of P707 million. Average daily turnover eased to P6.1 billion from the previous week’s average of P8.6 billion.
Top gainers last week were San Miguel Corp. which surged 11.1 percent to P94.90, Security Bank Corp. which jumped 9.8 percent to P201 and PLDT Inc. which increased 7.6 percent to P1,370.
Heavy losers were EEI Corp. which declined 5.4 percent to P6.12, DoubleDragon Properties Corp. which dropped 4.8 percent to P38.50 and Cebu Air Inc. which dipped 4.4 percent to P93.45.
