Dull trading seen to continue
Local stocks are seen headed for another week of lackluster trades due to the seasonal lull alongside a lack of fresh catalysts.
Last week, the main-share Philippine Stock Exchange index (PSEi) slipped by 129.72 points or 1.9 percent to close at 6,404.23 on Thursday. The market was closed last Friday as the nation observed the end of Ramadan.
“Market sentiment feels pessimistic with more investors taking to the sidelines in the past few sessions,” said PNB Securities deputy chief Manuel Lisbona. “The market might test support at 6,350 in the coming days. If that level is broken, the market must make a stand at 6,000.”
This developed as the “ghost” month started Wednesday last week and run until Sept. 4. During this period, many Asian investors shy away from large investments and big business decisions. As this Asian superstition coincides with the peak of summer vacations in the West, trading volumes thin out across global markets.
At the local market, among the companies that are expected to release second-quarter corporate earnings this week are San Miguel Corp., D&L Industries and Holcim Philippines (today); Ayala Corp. and Filinvest Land Inc. (Tuesday), Century Properties and GT Capital Holdings (Wednesday) and Vista Land (Thursday).
On macroeconomic data, the Philippines is expected to announce the latest export earnings figures tomorrow and overseas Filipino remittance data on Thursday.
“Easing tech export weakness amid upbeat non-tech exports in June probably supported solid gains during the month,” Citigroup said in a research note. Doris C. Dumlao