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Philippines: Investors may focus on second, third-tier firms
SECOND- and third-tier firms — especially those with good prospects — could dominate trading during the final week of the year, analysts said.
“With foreign fund managers on a holiday mode, local participants might dominate the week’s three-day trading session focusing mostly on second- and third-tier shares,” online brokerage 2TradeAsia said in a market note.
“Any weakness in select large-cap stocks would be a good window for players to move in, especially those with good stories to unfold,” it added.
Last week, the local market cheered the signing of the Tax Reform for Acceleration and Inclusion (Train) Act, which the government has said would underpin its massive infrastructure program.
“As the news gets finally absorbed, anticipate some fund managers to lock in on rallies until the net benefit sector gets known,” 2TradeAsia said.
With the market having returned to the 8,400 level on Friday, it said the next immediate resistance was at 8,570.
The benchmark Philippine Stock Exchange index added 0.65 percent or 54.03 points to close at 8,432.31.31 as the week ended.
The broader All Shares rose 0.58 percent or 28.61 points to finish at 4,921.41.
Source: http://www.manilatimes.net/investors-may-focus-second-third-tier-firms/370534/