Investors bullish ahead of Duterte’s SONA

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By Jed Jaleco Del Rosario
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LOILO City – After weeks of hovering below 8000 points, the Philippine stock index may soon breach the threshold, and offer new profits for investors.

Technical analyst Hernan Segovia believes that this new uptrend may be due to Duterte’s upcoming State of the Nation Address (SONA) as well as his administration’s commitment to economic growth.

“The market opened down by as much as 50 points but recovered at the last minute or so to gain around 85 points to close to the 8000 psychological level,” Segovia said, adding that the sudden upswing is largely related to news that the president will release a new budget for 2018 on the same day as his SONA.

“Investors are quite optimistic about the President Duterte’s SONA as a catalyst to break the 8000 level,” Segovia said. “And the market is preparing to do so, despite all the trash talk of our President and human rights discussion, and the Marawi incident. The market is still in the positive tone with regards to the economy, despite Marawi.”
Segovia further adds that, depending on the President’s SONA speech and the 2018 budget, local funds will release new capital into the market, prompting a new upswing that will defy a weak peso.

“Investors are pretty much supporting Duterte’s economic program. So for now, we are heading to new territory towards the index. The funds are awash with cash and they will put that back in the market. Until then, the market is bullish for the SONA,” Segovia said./PN
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