Stock-Market Outlook | VG Cabuag

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Share prices gained last week, with the main index returning to the 6,600-point level, as investors bought shares ahead of the policy meetings of the United States Federal Reserve and the Bangko Sentral ng Pilipinas.

The main index was up for three of the five trading days, but was still on lower volumes, as trades reached only P5 billion on average as against the year-to-date average of P5.72 billion.Most of the sub-indices ended in the green, led by the broader All Shares index that gained 44.27 points to close at 3,532.53 points, the Financials index rose 72.87 to 1,918.13, the Industrial index surged 168.05 to 9,505.89, the Holding Firms index added 87.26 to 6,405.79, the Property index increased 40.

“If the stars align—lower inflation, an end to the rate hike cycle, and more positive earnings releases—we could see the index attempt a breakout above the strong resistance at 6,650. Nonetheless, downside risk cannot be discounted just yet, as investors will be quick to sell in case news flows are disappointing,” Colet said.Japhet Louis O. Tantiangco, senior research analyst at Philstocks Financials Inc.

“How the market will close the week however may depend on our April inflation figures. An inflation reading slower than March’s 7.6 percent, especially one near or at the lower end of the Bangko Sentral ng Pilipinas’ 6.3 percent to 7.1 percent ranged forecast may give the local market a boost,” he said.Broker Regina Capital Development Corp. gave a hold rating on the stock of GMA Network Inc.

 

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