At the same time, he said the stock market would continue to draw strength from the US Fed’s seeming bias to maintain an easy monetary policy.
The slower-than-expected US jobs growth cast doubts on the Fed’s timeline to taper its monetary stimulus via bond buying operations. It was previously signaled that the Fed wasn’t in a hurry to raise its key interest rates but it could taper bond buying operations within this year. Sustained “risk-on” sentiment from Wall Street has boosted local sentiment on selected blue chips, particularly telecom stocks, added Jonathan Ravelas, BDO chief strategist.