Stock trading this week is seen more muted in volume compared to previous weeks as key Asian markets observe a long lunar turnover holiday break but the unfolding local corporate earnings season might provide some fresh catalysts, analysts said.
Last week, the main-share Philippine Stock Exchange index gained 140.06 points, or 2.22 percent, to close at 6,458.67 on Friday.
“Funds based in Hong Kong and Singapore will be quiet. Local investors will be quiet also because of the Philippine Business Bank initial public offering (IPO) and if foreign buying will still be strong, it will be mostly due to investors from US and Europe,” said Joseph Roxas, president of Eagle Equities Inc.
PBB is raising P3.2 billion from its IPO at a price of P31.50 a share or about 1.35 time the thrift bank’s book value. An IPO tends to suck liquidity from the stock market.
Maria Arlysa Narciso, an analyst at AB Capital Securities, said foreign developments were unlikely to have a negative sway on the local market’s performance this week.—Doris C. Dumlao