Sluggish trading seen to continue

Local stock trading is seen to remain sluggish this week as the rise in domestic coronavirus (COVID-19) cases increase risks of the government embracing more measures to restrict businesses and people’s movement.

Last week, the main-share Philippine Stock Exchange index (PSEi) fell by 4.35 percent to 6,436.10 as the surge in COVID-19 cases in the country unnerved investors.

BDO Unibank chief strategist Jonathan Ravelas said investors were fearful that recent restrictions could further delay the country’s economic recovery.

Higher inflation and the rising US interest rates added to investors’ worries, causing them to sell stocks, Ravelas said.

“The week’s close at 6,436.10 signals the market could still test the 6,000 to 6,300 levels in the near-term,” Ravelas said.

Any pullback is limited toward the 6,500 to 6,700, he added.

On Tuesday, this year’s first initial public offering listing will happen on the PSE. DoubleDragon Properties’ real estate investment trust, DDMP REIT is set to list after completing its P14.7-billion offering at P2.25 per share.

Joseph Roxas, president of Eagle Equities Inc., said the market would likely remain sluggish until the listing of DDMP REIT.

He said investors were also all eyes on the upcoming FTSE indices rebalancing.

—Doris Dumlao-Abadilla