Markets on holiday break

A+
A
A-

The local stock market is on holiday break today in commemoration of National Heroes Day. This means the local market will again miss out on the action in

Asian emerging markets, which are still out of flavor among global funds.

In the near term, market players are still bracing for a further shakeout. Through next month when the US Federal Reserve is widely expected to start its tapering of aggressive bond buying, many expect the local index to retest the year’s lows seen in June, when local equities knocked on bear territory.

“Chart-wise, the index tested the 6,000 level and fell below the 200-day moving average. A break below 6,000 may signal further losses toward the 5,650-5,800 levels,” said Banco de Oro Unibank chief strategist Jonathan Ravelas.

The Philippine Stock Exchange index lost 364.74 points or 5.59 percent during last week’s two days of trade as markets were disrupted by inclement weather.

Local bonds and the peso likewise weakened last week alongside the shakeout in the capital markets.

The normalization of global monetary policy could lead to a sharp outflow of capital from the Asia-Pacific region, triggering higher financing costs and exchange rate volatility, Standard & Poor’s Ratings Services said in a new report last week. Doris C. Dumlao

Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of INQUIRER.net. We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

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

editors' picks

advertisement

popular

advertisement

videos