Investors brace for rough trading in stock market this week
MANILA, Philippines—Investors are bracing for a choppy stock market trading this week given the volatility caused by US economic and sovereign debt concerns as well as the cautious mood arising from the onset of the so-called “Ghost month.”
Last week, the main-share Philippine Stock Exchange index slipped 1.47 percent to finish at 4,437.55, mostly taking its cue from the bleak mood in Wall Street.
“Global investors are starting to realize that global growth is too slow and uncertain and probably stalling. However, strong will and market liquidity prevented a triple-digit drop in the local index as local investors took advantage of the drop to position on heavily depressed shares,” said Banco de Oro Unibank chief strategist Jonathan Ravelas.
“Prospects of the local markets continue to remain bullish amid a stable macroeconomic environment,” Ravelas said, noting, however, that the market was technically vulnerable to further weakness toward 4,100 to 4,150 in the near term.
“Should these levels hold, a pullback toward the 4,400-4,450 levels is in the cards. However, should a break below the 4,100 levels materialize, expect further weakness toward the 3,850-4,000 levels,” Ravelas said.
