THE LOCAL stock market is seen consolidating this week while awaiting the fourth quarter Philippine economic report on Thursday.
Last week, the main-share Philippine Stock Exchange index shed 241.45 points or 3.7 percent to close on Friday at 6,208.05. A rebound on Friday cut the PSEi’s losses from 5.7 percent during the week.
For this week, all eyes are on the upcoming Philippine fourth quarter and full-year 2015 gross domestic product (GDP) report as analysts await sign posts on potential economic performance for this year.
Manuel Lisbona, president of PNB Securities, said: “Trading bias may likely be sideways as most participants are expecting a slower [gross domestic product] growth rate for both fourth quarter [quarter on quarter] and full-year 2015.”
“This year will likely be different due to election-related spending,” Lisbona said.
While there may be some window-dressing activities this week, Lisbona noted: “Many investors are treating rallies as opportunities to exit or at least lighten their position.”
Banco de Oro Unibank chief strategist Jonathan Ravelas said investors on Friday found respite ahead of this week’s release of fourth quarter 2015 GDP growth, which is seen at 6 percent based on consensus estimates.
For its part, BDO estimates a 6.3-percent growth for the quarter, bringing full-year growth to 5.7 percent. Doris Dumlao-Abadilla