Quantcast
Latest Stories

Weaker PH trading seen



The local stock market is seen to continue trading with a downward bias this week on jitters over the fragile economic recovery in the United States alongside escalating tension in the Korean peninsula.

Last week, the main-share Philippine Stock Exchange index lost 123.33 points, or 1.8 percent, to close at 6,727.14 on Friday as threats of war from North Korea and concerns ahead of the release of a crucial US jobs data weighed down on regional markets.

On Friday night, the latest US data confirmed what the markets feared days before its release: American employers added only 88,000 new jobs—less than half of what was expected by the market. This also marked the fewest job creation in nine months.

“Chart-wise, the recent break of the 6,750 (support) levels implies further tests toward the 6,500-6,600 levels in the near term,” said Jonathan Ravelas, chief strategist at Banco de Oro Unibank.

Abbygayle Estrella, an analyst at AB Capital Securities, said that for the coming week, the PSEi might move lower as the focus would shift “from the lack of local catalysts to geo-political tensions abroad.” In this regard, she said investors must preserve their profits as this week’s sessions could be “playing on the blind slide.”

Estrella said technical indicators were neutral as the relative strength index was flat with a downward bias.

AB Capital Securities sees the PSEi’s support and resistance levels at 6,640 and 6,950, respectively. Trading will also be shortened this week as April 9, Tuesday, is a non-working holiday in observance of “Araw ng Kagitingan.”

Estrella said that apart from digesting the US jobs data, the markets would await the release of the third Federal Open Market Committee (FOMC) minutes for the year.

“A failed attempt to break 7,000 signifies the strong, psychological resistance for the PSEi. Being the first to raise its credit outlook on the country, the effect of Fitch’s investment rating upgrade was short-lived because the market has been factoring it since last year. This, countered by the jitters from North Korea, had reverted the main index to 6,700 from its sudden rise to 6,900,” she said.—Doris C. Dumlao


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Finance , forecasts , Philippines , stocks



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Nebraska toddler gets stuck inside claw machine
  • Philippine eagle rescued by Army turned over to DENR
  • Gunmen attack Iraq military base, kill 10 soldiers
  • South Korea president shouted down by distraught parents
  • Classmates celebrating 60th birthday among missing in ferry sinking
  • Sports

  • Vietnam says it will not host Asian Games
  • Nadal passes clay landmark with 300th victory
  • Wawrinka waltzes through with Monte Carlo walkover
  • Power Pinays smash India in Asian Women’s Club volleyball opener
  • PH youth boxers off to stumbling start in AIBA World tilt
  • Lifestyle

  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • This is not just a farm
  • Clams and garlic, softshell crab risotto–not your usual seafood fare for Holy Week
  • Moist, extra-tender blueberry muffins
  • Entertainment

  • Jones, Godard, Cronenberg in competition at Cannes
  • Will Arnett files for divorce from Amy Poehler
  • American rapper cuts own penis, jumps off building
  • Jay Z to bring Made in America music fest to LA
  • Why Lucky has not bought an engagement ring for Angel
  • Business

  • Total says makes ‘very promising’ oil find off Ivory Coast
  • ‘Chinese Twitter’ firm Weibo to go public in US
  • World stocks subdued, Nikkei flat on profit taking
  • Asia stocks fail to match Wall Street gains
  • Fired Yahoo exec gets $58M for 15 months of work
  • Technology

  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Filipinos #PrayForSouthKorea
  • Taylor Swift tries video blogging, crashes into fan’s bridal shower
  • DOF: Tagaytay, QC best at handling funds
  • Smart phone apps and sites perfect for the Holy Week
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Malaysia quarantines 64 villagers over MERS virus
  • DFA: 2 Filipinos survive Korean ferry disaster
  • PH asks airline passengers to check for MERS
  • Syria most dangerous country for journalists, PH 3rd—watchdog
  • Japan says visa-free entry still a plan
  • Marketplace