Weakness seen as Philippine market reopens Wednesday

MANILA, Philippines—Local stock trading is forecast to remain weak when the market reopens Wednesday as investors scramble for leads in an abbreviated trading week.

Markets were closed Monday due to a holiday ending the Muslim holy month and Tuesday, having been declared Ninoy Aquino Day.

In a research note to its clients, AB Capital Securities said sentiment this week would likely be driven by developments abroad, given that the local earnings season has already ended.

“One important event [this] week will be the Federal Reserve’s release of Federal Open Market Committee meeting minutes, which will give insights into the US financial and economic conditions for the month,” AB Capital’s Gregg Adrian Ilag said.

He noted, however, that stocks on the Philippine Stock Exchange were now trading at an average of 16 times their earnings on a per-share basis, which he said was a premium to historical valuations.—Daxim L. Lucas