Local stocks are seen remaining prone to profit-taking this week on fresh global jitters created by the slower-than-expected fourth-quarter US economic growth.
Last week, the main-share Philippine Stock Exchange index lost 1.4 percent to end at 4,679.89 on Friday.
The markets are opening this week amid a backdrop of sluggish Wall Street trading on Friday (Dow was down 74 points or 0.58 percent), in turn partly triggered by news that the US economy had grown only 2.8 percent in the fourth quarter of 2011, which was slower than the market consensus of 3 percent.
The Philippines itself is announcing its 2011 economic report card on Monday.
“The market is coming from a much-needed correction this past week. As US GDP [gross domestic product] numbers proved to be weak, the long-term implication is that funds will continue to flow to emerging markets. In the short term, investors should take advantage of dips or consolidations to add to their positions,” said Manny Lisbona, deputy head of PNB Securities.
AB Capital Securities analyst Gregg Adrian Ilag said, local investors would also be closely watching Monday’s announcement of Philippine GDP results.
“We think that GDP (grew) 4 percent in 2011, given the weak 3.6-percent growth in the first nine months,” Ilag said.
Ilag said the World Economic Forum could also help set the tone for global market sentiment this week. Another factor to watch for this week is the US release of the closely watched non-farm payroll.—Doris C. Dumlao