Profit-taking seen to continue
MANILA, Philippines—The release of local corporate earnings for the first quarter will be the biggest influence on market movements this week, although profit-taking may persist.
Share prices fell for four consecutive days last week, bringing the benchmark Philippine Stock Exchange index to a low of 4,173.61 before closing at 4,219.07 points on Friday.
The drop was driven by the announcement that local inflation was higher than government expectations last April. This spurred heavy selling later in the week as the central bank raised key interest rates by 25 basis points—its second rate adjustment since the start of the year.
In its weekly report, online brokerage firm AB Capital Online said, “The selling seen last week can persist in the coming week as investors take profit.”
The company said local developments that could move the market this week were the release of economic data and company-specific reports like first-quarter earnings.
“Foreign developments will mainly come from the US and will center on the health of its economy,” the firm said.
Companies that are set to disclose their first-quarter figures include Manila Water, Globe, ABS-CBN, PLDT, Ayala, Ayala Land, Metro Pacific and San Miguel.
“What these companies disclose will move the market as they are mostly index issues,” it added.—Paolo G. Montecillo
