MARKET OUTLOOK
Shares opened the week on a flattish note as investors went bargain hunting, while some were still reeling from last week’s news, particularly the faster-than-expected inflation print and the US’ threat of more tariffs on Chinese products.
The afternoon session saw investors turning to bargain hunting for selected names that were oversold. Blue chip stocks have been oversold and it was just taken by some investors as a chance to buy at lower prices.
While the PSEi remains one of the most expensive indices in Asia, the sell-off due to the inflation data last week and trade rift between the US and China is a bit overdone so market participants may buy up the index stocks today.
People are trying to test the waters after the selling last week.
US President Donald Trump said on Friday he was ready to levy additional taxes on practically all Chinese imports, threatening duties on $267-bil of goods over and above planned tariffs on $200-bil of Chinese products.
China said it will respond if Washington takes any new steps on trade.
Despite all the trade tensions there's still general optimism because the full effect of the previous tax cuts haven't been seen yet.
At the same time, investors are optimistic about economic data and forecasts for earnings.
Fundamentals appear to be in place to support share prices.
Investors are also anticipating President Rodrigo Duterte’s plans to address the nation today.
