Selective buying seen to push stocks higher
January 10th, 2010The stock market will likely keep its upward momentum this week as investors pick up issues with high growth potential this year.
Analysts said investors would continue to accumulate stocks set to perform well this year despite narrow trading. Among these are utilities and consumer-related stocks which are expected to benefit from the presidential election.
“If investors continue its buying spree in selected stocks, the index may find itself in a similar situation this week,” AB Capital Securities said.
The lack of strong and external factors, though, may limit PSEi’s upward movement. The index last week closed at 3,118.47 points, up 41 points week-on-week. AB Capital noted an increasing interest on the utilities sector. Ener’ Development Corp. closed at P5.10 from P4.60 while First Philippine Holdings ended the week at P49.50 from P46 a week ago.
Other top performers last week were EEl, which gained P0.10 to close at P2.85 apiece and DFNN Inc., which closed 13.2 percent higher from its previous week’s close of P10.75.
AB Capital said the company was expected to benefit from the growing demand for infrastructure projects in the Middle East, its main market.
DFNN last week disclosed that a Macau-based company would invest in its gaming operations at an agreed price of P25 share.
Meanwhile, Central Bank last week reported an 11.3-percent growth in dollar remittances for the month of November, the highest monthly expansion since October 2008.
Data showed that remittances reached $1459 billion in November from $1311 billion recorded in the same month in 2008. The figure was just slightly lower at $1531 billion in the previous month, when remittances rose 6.7 percent.
Money sent home by migrant Filipino workers have been growing at a slower pace since the start of last year as rich host countries slashed jobs and prioritized their own citizens due to the global economic crisis.
The November figure brought the country’s total remittance inflows in the first 11 months of 2009 to $15.78 billion, up 5.1 percent on year.
Major remittance sources in the 11-month period were the United States, Canada, Saudi Arabia, the United Kingdom, Japan, Singapore, the United Arab Emirates, Italy and Germany.