Lackluster trading seen this week
Philippine Daily Inquirer
Local stocks are seen trading sideways when the market reopens on Wednesday after a long weekend break as investors pause to reassess their portfolio after the recent second-quarter financial reporting season.
Last week, the main-share Philippine Stock Exchange index lost 1 percent to close at 5,206.81 on Friday, weighed down most by the financial and services counter.
Banco de Oro Unibank strategist Jonathan Ravelas said profit-taking seemed to be the main theme last week as concerns on slower global growth prospects escalated.
“Continue to expect sideways trading between the 5,200 and 5,325 levels in the week ahead. A break below the 5,200 levels will bring risks toward the test of the 5,000-5,050 levels,” Ravelas said.
Freya May Natividad, an analyst at 2TradeAsia.com said: “It seems difficult to spot a firm direction in a sideways-trending market, especially on thin volume indicators.” She said terms such as “key catalysts” have dominated headlines as players turn clueless on next actions that might be taken by the US Fed, the European Central Bank or China.
Using a basket of 24 index-linked firms’ weighted market capitalization, Natividad said interim results for the semester were 16 percent better year on year and 4.5 percent higher quarter on quarter. But excluding heavyweight telecommunications share, she said first-semester growth would be 21.7 percent year on year and 7.2 percent quarter on quarter.
“Although growth might slow in the third quarter, players are aware of seasonal variables, especially with the onslaught of environment-related events. This would likely be offset by improved spending during fourth quarter, not to mention the prelude to next year’s election season,” she said.—Doris C. Dumlao
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