The benchmark Philippine Stock Exchange Index (PSEi) is poised to see minimal movement in the second quarter of 2017 with investors unlikely to make aggressive bets after the PSEi saw big gains in the first three months of the year.
Many are also taking a wait-and-see stance, with eyes cast toward developments in the United States in terms of interest rate hikes, protectionist rhetoric from US President Donald Trump as well as domestic inflation, said Manuel Lisbona, president of PNB Securities Inc.
“The year 2017 started bullishly as positive sentiment was boosted after the government announced that the economy sustained its performance in 2016, which marked the country as one of the fastest growing economies in the region,” Lisbona said in an e-mail.
“For 2Q 2017, we are expecting the market to naturally weaken, as positioning for annual cash dividends has mostly finished,” Lisbona added, when asked about his outlook for the current quarter.
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Hermenegildo Z. Narvaez, BPI trade head of equity research, likewise expected “minimal gains” for the PSEi in the second quarter.
“Selective stock pricing remains the way to go,” Narvaez said.