Mart seen holding above 5,000

MANILA, Philippines - The Philippine Stock Exchange (PSE) index is expected to keep its pace and position above the 5,000-point level throughout the week following a better-than-expected 6.4-percent economic growth for the first quarter of the year.

The main composite index recorded a gain of 2.77 percent to settle at 5,062.44 points last week. Last week’s 136 points recovery was brought about by political highlights during the week and better than expected first quarter gross domestic product (GDP) growth of 6.4 percent. 

“The first quarter gross domestic product growth was a good start especially with the rise in the government’s spending through its infrastructure projects. Tourism and real estate, which were mentioned as growth drivers, is still expected to be major contributors to growth for this year. Exports might see only marginal growth as its main component, semiconductors, face slowdown in demand from major Asian trading partners,” said Maria Arlysa Narciso of AB Capital Securities.

“Although there are negative factors outside of the Philippines, the strength of its economic fundamentals provide a balance to external troubles,’’ she added.

Narciso said the   economic woes in Europe, the expected slowdown in the Chinese economy and weak jobs data in US remain as major concerns for the local market this week.

Narciso, however, said investor confidence also provided a huge boost to the market’s overall performance last week as Moody’s upgraded its outlook for the Philippines from stable to positive due to the government’s efforts to reduce the fiscal deficit and debt.

Last week’s market activity was limited to second and third liners except for some index issues. Calata Corp., a newly listed agri-industrial company, jumped 176 percent to P22 last week. Puregold Price Club Inc.   rose 11.6 percent from the previous week as it disclosed acquiring 19 branches of Parco Supermarket, which will expand its customer and revenue base. As for the bluechips,   First Gen Corp.   rallied 3.5 percent as it acquired full ownership of Lisbon Star Management Limited. The latter’s wholly-owned subsidiaries hold 40-percent interests in First Gas Holdings Corp., FGP Corp., and First NatGas Power Corp. This acquisition gives First Gen 100-percent ownership of the Santa Rita and San Lorenzo power projects.