Expect lethargic trade to linger at the stock market

The stock barometer is seen continuing to trade with a bearish bias as investors track the trajectory of COVID-19 cases and the vaccination program in the country.

Last week, the Philippine Stock Exchange index (PSEi) ended flat at 6,370.87 from the previous week’s finish of 6,378.07.

Two large stock offerings coming to the local stock market this May are also expected to siphon off the market’s liquidity, which has turned anemic in recent weeks. Food manufacturing giant Monde Nissin and renewable energy AC Energy Corp. are bringing to public hands as much as P88.93 billion worth of stocks this month.

BDO Unibank chief strategist Jonathan Ravelas said the market slipped by 0.11 percent last week “on lingering concerns on the economy’s prospects.”

“The week’s close at 6,370.87 signals the market’s continued march towards the 6,300 levels. A break below said levels could accelerate the decline towards the 5,700 to 6,000 levels in the near-term,” he added.

The latest Nomura mobility index in Manila showed a modest reading of -67 percent, an improvement from the low of -97 percent during the enhanced community quarantine. Nomura said, however, it was still far from normal levels and lagging the improvement in other key cities in the region.