Light trading seen this week
The local stock market is seen to trade with an upside bias during the two remaining trading days before 2015 comes to a close.
Before the market paused for a long Christmas break last week, the Philippine Stock Exchange index (PSEi) firmed up by 135.35 points or about 2 percent to close at 7,002.42 on Wednesday.
Joseph Roxas, president of local stock brokerage Eagle Equities, said the market might still have room to rise in the last trading week of the year. However, he said the PSEi might reach only around 7,100.
Last year, the PSEi closed at 7,230.57. If the local stock barometer closes below this level, it will be the first decline in six years.
At the start of this year, market consensus pointed to the market rising for the seventh straight year in 2015. A new PSEi peak was hit at 8,136.97 in April but the barometer has since then pulled
back due to a combination of external concerns and slower domestic economic growth this year.
Among the key external headwind came from China’s economies woes, fears of “Grexit” or exit of Greece from the European Union and the US Fed interest rate lift-off which started this month.
Trading volume is also expected to be thin this week as several traders and investors have gone on a holiday since last week.
A research note from Metrobank said that for this week, “expect markets to trade lightly, as investors take a break for the holiday season.” “However, possible yearend window dressing might provide gains during the break.”
Following the Christmas break, the Metrobank note said the following data would be out on Tuesday: Philippine imports and trade balance data for October.
