Optimistic Stock Market Forecast

Last week, the stock market in the Philippines showed positive signs by bouncing back from its 6,400 support level on December 20. Share prices increased as the benchmark Philippine Stock Exchange index gained 75.02 points and closed at 6,603.81 points after two trading days. Japhet Louis O. Tantiangco, a senior research analyst at Philstocks Financials Inc., noted that the market has been up in five out of the last six trading days. Despite this, caution is advised as the market still operates under a newly formed death cross signaling a possible downtrend.

Average daily trading volume reached P3.2 billion, with foreign investors as net buyers at P45.72 million. All sub-indices closed in the green except for the Mining and Oil index. Gainers led losers 123 to 89 for the week.

For this week, there is optimism for share prices to rise. The broker 2TradeAsia recommended taking advantage of market pessimism for potential profits. Investors are advised to look out for the Philippine December inflation data and monitor the country’s economic performance and currency strength.

Regarding stock picks, Maybank Securities trimmed its target price for Ayala Corp. to P1,010 but maintained a buy recommendation due to the lower valuation of ACEN Corp. They also recommended buying shares of International Container Terminal Services Inc., projecting a strong performance this year despite potential trade war headwinds.