Consolidation seen

The local stock barometer is seen to consolidate this first trading week of December as the market further digests a potential downgrading of the local growth outlook.

The Philippine Stock Exchange index (PSEi) last week gained a modest 18.2 points or 0.25 percent to close on Friday at 7,294.38. The index hit a high of 7,372.57 last week but pulled back sharply after the country’s third-quarter gross domestic product (GDP) growth slowed to only 5.3 percent, way below consensus forecast of 6.5 percent.

“Chartwise, expect the index to continue to range between the 7,200-7,300 levels in the week ahead,” said Jonathan Ravelas, chief strategist at Banco de Oro Unibank. “The 7,300 level is proving to be a tough resistance as any signs of breaching that mark is being met with profit-taking,” he said.

Ravelas said his team was keeping its yearend target for the PSEi at 7,000.

Joseph Roxas, president of local stockbrokerage Eagle Equities Inc., said the Santa Claus rally might not yet start this week.

This week, dining chain operator Max’s Group Inc. will launch its public offering at P17.75 a share, allowing the company to raise P3.5 billion. The offering was valued at about about 20 times its likely earnings for 2015.

Three other companies that earlier conducted initial public offerings are set to list on the PSE this week: Phoenix Semiconductor Philippines Corp. (Dec. 1), Xurpas Inc. (Dec. 2) and Integrated Micro-Electronics Inc. (Dec. 5). Doris C. Dumlao