Duterte SONA to influence stock market’s direction
President Rodrigo Duterte’ State of the Nation Address (SONA) today could set the tone for stock market trading moving forward, analysts said.
While Monday’s close will come before Duterte takes to the podium at 4:00 p.m., investors will be looking for pronouncements regarding issues ranging from more tax reforms to autonomy in Mindanao, they added.
“The president will be giving his SONA … which may give investors the assurance that they have been longing for,” Eagle Equities, Inc. research head Chris Mangun said.
“This event may turn out to be the catalyst to get investors back into this market,” he added.
Online brokerage firm 2TradeAsia.com said attention would be focused on plans to lower corporate income taxes and reduce fiscal incentives, renewable energy, the expansion of the “Build Build Build” program, the Philippines’ territorial dispute with China, moves to end illegal contractualization and progress with regard to the proposed Bangsamoro Basic Law.
“Investors would like to see if the key direction hasn’t changed, or may divert in light of the initial phase of the tax reform plan’s impact on inflation. This will be crucial to listed companies’ capital expenditure rollout, including timing of budget preparation for large-ticket infrastructure undertakings,” it said.
“Any hint to affirm this year’s growth prospects could invigorate appetite for equities especially if these would lead to increased direct investments and job creation.”
Also expected to influence the market’s direction are second quarter earnings results.
Last-minute buying ahead of the SONA allowed the bellwether Philippine Stock Exchange index to end Friday up 0.16 percent or 11.74 points at 7,399.61.
The wider All Shares eked out a 0.10-percent gain or 4.26 points to finish at 4,466.70.
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