ILOILO City – The Philippine stock market continues its recovery this week, as the Philippines Stock Exchange index (PSEi) closed at 7,819.39 points on Friday.
Among the biggest gainers last week were the so-called blue chip stocks, most of which have recovered from bearish loses in the past few months.
Local Technical Analyst Hernan Segovia reports Lopez and Ayala-led companies were among the biggest blue chip winners last week, and are expected to recover more quickly in the weeks to come.
“It’s quite assuring that the market is on track towards a bullish sentiment towards 8,000 or so, and hopefully we will continue to do so until the end of August,” Segovia said.
With regards to the Philippines’ inflation problems, though, Segovia believes that the worst has passed, but adds that it will take time for the markets and the economy in general to process the effects.
Additional information about inflation and other related matters will also have to wait until the end of the third quarter, when companies will be able to release the latest information about their earnings. If positive, these third quarter earnings could help the market recover for the rest of the year. /PN
