Traders await cues from midterm elections, earnings
The fate of the local bourse this week will depend largely on the fate of the rest of the country as Filipinos voted for their next leaders in the midterm elections.
At the same time, anticipated top first-quarter earnings performers may provide a boost to last week’s elation over trade negotiations despite slower-than-expected economic growth at home.
Japhet Tantiangco, research head at Philstocks Financial Inc., said investors were expected to watch out for the results of Monday’s midterm elections, “as these would provide clues on the future of policies here in the Philippines.”
Meanwhile, trading platform 2TradeAsia.com said in an advisory over the weekend that consumer and banking companies may continue to provide some optimism, especially since these sectors have so far performed well.
More earnings results are expected to pour in this week, with the deadline of quarterly reports set on Thursday, May 15.
Last week, the Philippine Stock Exchange Index (PSEi) made progress in its uphill climb toward the bull territory after closing 0.72 percent higher week-in-week to 6,458.20.
While the below-target gross domestic product growth in the Philippines resulted in episodes of sell-offs, the United States’ move to finally move forward with a trade deal with the United Kingdom eventually shored up the index.
2TradeAsia also pointed out that resilient consumer spending remained a strong catalyst.
In the January to March period, household-level consumption accelerated to 5.3 percent from 4.7 percent a year ago because of easing inflation.
