MANILA, Philippines - Bulls are back in play at the local bourse, at least for now, on a host of positive developments, traders said.

The Philippine Stock Exchange (PSE) will see a shortened three-day trading week. Analysts said investors would focus on whether the benchmark index would center on the PSEi’s ability to stay above the 7,500 level.

“We expect local participation to dominate as most fund managers take their Lenten break. Seize on dips to position and hunt for stocks with good upsides. Immediate support is expected at 7,500,” said online research portal 2TradeAsia.com.

BDO Capital and Investment Corp. president Ed Francisco said there is prevailing optimism in the market because of the rosy prospects of a strong first quarter economic performance which could hit at least seven percent.

In addition, international rating agencies’ stable outlook on the Philippines aided sentiment despite the 3.4 percent uptick in inflation for March from February’s 3.3 percent.

Last week, PSEi surged 272 points at 7,583, up 3.72 percent week-on-week, with all sectors in positive terrain led by property (up 5.9 percent) and financials (up 4.3 percent).

Turnover averaged P8.4 billion, higher by 19 percent as gainers outran losers, 102 to 83.

This came about as net foreign buying stood at P1.673 billion for the week, reversing prior week’s outflow of P1.3 billion.

Francisco said the recently concluded ASEAN Finance Ministers Investors’ Seminar (AFMIS) in Cebu, which meant stronger ASEAN ties, also bolstered sentiment.

“As this year’s host, the Philippines bagged business pacts with peers, especially after the Bangko Sentral ng Pilipinas and Bank of Thailand (BoT) signed a letter of intent for bilateral talks as part of the ASEAN Banking Integration Framework (ABIF). The move would allow the entry of qualified ASEAN banks, which could harness partnerships in financing and trade. Also, BSP signed a declaration of conclusion of negotiations (DCN) with Bank Negara Malaysia (BNM) on the entry of qualified ASEAN banks,” 2TradeAsia also said.