Market gets ready for earnings results

Market gets ready for earnings results

MANILA, Philippines — The stock market is priming up for the release of fourth quarter and full-year 2023 corporate earnings starting this week after laying the groundwork for further ascent last week, traders said.

The benchmark Philippine Stock Exchange idex (PSEi) rebounded at the end of last week, buoyed by the World Bank’s outlook which implied that the Philippines is slated to be among the fastest growing economies in Asia-Pacific this year.

The World Bank had estimated a 5.8 percent economic growth for the full year.

While this is below the government’s target of six to seven percent, it is expected to be ahead of key ASEAN members such as Vietnam (5.5 percent) and Indonesia (4.9 percent).

Last week, the PSEi inched up by 13 points or 0.20 percent to 6,643 from a week ago.

Average market turnover likewise improved to P6.50 billion, up by 51 percent week-on-week, while net foreign buying improved to P529 million on average.

2TradeAsia said, “the PSEi is building a clearer technical runway toward 6,800, making a trip to 7,000 not too lofty of a goal in the medium term.”

In the short-term, market investors are looking at full-year 2023 corporate earnings results which would start to come in the next few weeks.

2TradeAsia sees support at 6,550, with resistance at 6,700 to 6,800.

In terms of specific industries, 2TradeAsia identified certain sectors with strong growth potential.

“A more growth oriented strategy relative to 2022 and 2023 is highlighted given this inflection in market confidence, switching for higher earnings potential plus expansion stories in line with capital costs being more accessible.

“Main beneficiaries per our simulations include banking, power, gaming, holdings and property with positive wildcards in consumer discretionary names once inflation and consumer confidence alight and create upsurge in premium spending plus margin windfall for corporates,” it said.