Stocks seen to keep rising

MANILA, Philippines -  Local stocks are expected to sustain their upward momentum this week amid rising confidence that Greece’s complex bailout plan could be decided soon.

Last week, the Philippine main composite index gained 2.03 percent to close at 4,880.69 as investors cheered the latest economic data showing a healthier US economy.

Astro Del Castillo, managing director at First Grade Holdings Inc., said the market will continue its upward trek this week given favorable developments overseas.

The services sector led the rally, rising 4.26 percent week on week followed by property (3.62 percent), financials (2.89 percent), holdings (1.06 percent) and Industrials (0.07 percent). Only the mining counter ended in the red, shedding 0.18 percent due to the overhaul of the current mining policies in the country.

“Foreigners were net buyers for this week as optimism reigned on investors’ minds despite the ongoing Euro zone fears,” said Gregg Adrian Ilag of AB Capital Securities.

Ilag said investors’ attention will be centered on the Eurozone finance ministers meeting scheduled today that is to approve the new financing package which includes the debt restructuring via debt swap.

“There are only a few economic indicators next week which means that global market sentiment will most likely reflect developments on Europe. The German Ifo Business climate will be released next week, the past results during the last three months have always beaten expectations, the previous reading yielded 108.3,” Ilag said.

Ilag pegged the market’s support levels at between 4,848 to 4,852.

Given the market’s overbought position, Ilag has advised investors to wait for lower index levels before buying blue chip stocks.