Metro Manila (CNN Philippines) — The traditional blowing of horns and the ringing of bell on Monday (January 4) kicked off the first trading day for 2016.
Traders and analysts looked forward to a good year — saying the coming election season will lift the economy.
“National positions, and even local positions, are up for grabs,” noted Astro del Castillo who is president and managing director of First Grade Finance. “Imagine all of them spending, so the money in the system will surely move in favor of the economy.”
The gains will benefit sectors and industries, including media institutions that will benefit from advertising spending.
Also count in consumer-driven sectors like food and retail, airlines — because of more domestic travel — as well as telecommunication firms.
If you’re looking at long-term investments, analysts point to power, construction and property.
“We’re very hopeful on the power companies, new addition coming in, and of course, there’s going to be supply constraints, so those companies are going to benefit,” according to Luis Limlingan, who is head of sales for Regina Capital.
But stock analysts say developments abroad will weigh in on the upbeat investor sentiment.
In fact, Asian equities were on a sell-off at the close of the first trading day of the year.
China, one of the largest economies in the world is still on a slowdown.
The brewing tension in the Middle East is also a threat, as well as the U.S. Federal Reserve’s continued rate hike this year.
Despite this, experts are banking on the country’s strong economy to weather external challenges.
“We think the larger story is still strong, and that will provide the backbone for how the economy will be positive in the long run,” says Nisha Alicer, who is head equity analyst for DA Market Securities.
Analysts are keeping a conservative estimate of between 6300 and 7700 by year-end. But they are still hopeful the 8000 level will be reached.
