Quantcast
Latest Stories

Cautious trading seen



Local stocks are seen trading with caution in the next few weeks as global funds continue to favor developed markets at the expense of emerging markets like the Philippines.

This week, the main-share Philippine Stock Exchange index (PSEi) fell by 129.72 points or 1.9 percent to close at 6,404.23 on Thursday. Local markets were closed Friday in observance of the end of Ramadan.

Thursday’s close implied further tests toward the 6,350 levels, said Banco de Oro Unibank chief strategist Jonathan Ravelas. “If broken, we could see further losses toward the 5,800 to 6,000,” he said.

Global volatility and adjustments being made in the equity and currency markets would have some dampening effect on the Philippine market, Citisec Online chief technical analyst Juan Barredo said in a research note.

“There may yet be a need for prices to simmer down as the index still shows technical weakness, perhaps looking between 6,300 and 6,100 for next support,” Barredo said.

“Mining, financials and property stocks seem to be sectors under greater weakness and may continue to show this into the next couple of months. It is hoped that such reactive swings bring prices back to much better valuations and draw out fresh windows of trading opportunity closer to the fourth quarter,” Barredo said.

The expected consolidation low and high ranges of the PSEi into the rest of the year would be between 5,800-6,100 and 6,800-7,100, Barredo said.

Markus Rosgen, head of Citigroup’s Asia-Pacific equity strategy, said in the week ending Aug. 8, bond funds saw a second week of global outflow at $2.2 billion while an inflow of $6.9 billion went into equity funds.

“US funds continued to have the largest inflow at $5.8 billion, while European funds also saw some $1.8 billion of inflow,” he said, adding that most of the outflows came from emerging markets of Asia. Foreigners sold $226 million of Asian equities last week, mostly out of Taiwan and Thailand while India and Indonesia saw net purchases of $230 million each. 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: Business , stocks

  • carlcid

    “Cautious trading” is euphemism for sideways or even downward movement.

  • upupperclassman

    The Philippine bull market has been badly shaken since the last pull back. The bull has lost its way and does not know how to find its way back.



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

  • Anti-gay demo in Ethiopia cancelled
  • Obama launches measures to support solar energy in US
  • Nebraska toddler gets stuck inside claw machine
  • Philippine eagle rescued by Army turned over to DENR
  • Gunmen attack Iraq military base, kill 10 soldiers
  • 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

  • Ford Mustang turns 50 atop Empire State Building
  • 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
  • Entertainment

  • Cannes film festival launches race for 2014 Palme d’Or
  • 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
  • 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