The local share prices of Philippines are expected to climb all over again in this week after coming from several successful run-ups in the last week. Incidentally, those run-ups helped Philippines local shares to get to record highs in the previous week. The robust turnover value is expected to continue in this week as well. According to many analysts, this is expected as the Fund Managers are seeking sort of high yield in the emerging markets and they want to secure a position before the earnings season starts. According to the Managing Director of First Grade Finance, Astro C. del Castillo, the run-ups are all set to sustain as the turnover is of really large value. Astro added that the investors are looking forward to the corporate earnings and the momentum is still there, so, at least, for now, there is nothing to worry about the Philippines stock share prices.
The Philippine Stock Exchange index has surged by 2.45% over the last few weeks and finished at a record high figure of 6318 in last week. This marks the first time when the index has closed above the 6300 mark. The main index has been greatly helped by the property firms which actually posted increase of 6.56%. Apart from that, the industrial companies also jumped up by 4% in the same time frame. The average participation in the Philippines local stock market also increased by 42% on last week, thereby taking the investment to P9.357 billion.
According to the Investment Analyst of 2Trade Asia, Freya Natividad, the fund managers were disappointed as the US 4th quarter Gross Domestic Product was less than expected, however, the Asian region is still going to experience large fund movements in favor of the high yield assets. As the foreign fund managers are going to give some extra turnover and that is added to a probable positive local corporate news, the shares should not go down, as stated by Freya.
Last week, Freya stated that the better than expected GDP data of Philippines helped the case for local stocks. In this week, the main index may build a new base in the 6250 – 6300 region and Freya advised investors to go for stocks with the solid sector prospects. Freya added that investors should be looking for the performing stocks in each of the available categories.