Volatile trading seen this week as eurozone woes linger

MANILA, Philippines—Local stocks are seen remaining hostage to volatile overseas markets as the Greece-induced fiscal woes in the eurozone continue to unfold.

Despite closing in positive territory on Friday, the main-share Philippine Stock Exchange index lost 1.4 percent last week to finish at 4,271.72.

“The market’s direction will be largely dictated by events in the eurozone. Domestic factors, particularly the latest inflation figures, will also weigh on the index this week,” said Manuel Lisbona, deputy chief of PNB Securities.

It was reported on Friday that the inflation rate in October came in at 5.2 percent, higher than the market consensus of 5 percent.

Lisbona sees the trading range for the main index this week between 4,230 and 4,310.

“Chart-wise, continue to expect the market to try the 4,350-4,400 levels in the near-term,” said Banco de Oro chief strategist Jonathan Ravelas. “Only a break below the 4,150 levels will call the market bears back to play.”

On Friday, the Dow Jones industrial index slipped 61.23 points or 0.51 percent to finish at 11,983.24.

Risk-taking in Wall Street was spoiled by a tumultuous G-20 meeting, which suggested that Greece and the rest of eurozone remained on shaky ground.

Markets were also hardly perked up by the latest US jobs report showing that October unemployment had eased to a six-month low of 9 percent.