Philippine stocks seen to rise this week
Local stocks are seen firming up this week on the back of some month-end window-dressing but value turnover may thin out ahead of another long weekend holiday break.
Last week, the main-share Philippine Stock Exchange index shed 27 points, or 0.5 percent, to close at 5,405.16 on Thursday. The market was closed Friday in observance of the Islamic “Feast of Sacrifice,” or Eidul Adha.
This week, the market will trade only until Wednesday as November 1 and 2 are national holidays in honor of the dead.
“I think it will be up because it’s the end of the month,” said Joseph Roxas, president of Eagle Equities Inc. Aside from the month-end window-dressing, Roxas said Wall Street might be bottoming out from the recent pullback that was caused by concerns on third-quarter corporate earnings.
Given the upcoming holidays, Roxas said trading would likely be “more quiet” on the local front.
BPI Securities said the PSEi’s 0.5-percent decline last week was due to lower US corporate earnings, falling commodity prices and concerns about Spain’s weak economy dampened investor sentiment. However, it noted that foreign activities for the week registered a net buy of P2.29 billion.
This week, BPI Securities said “market movement may be limited in terms of volume participation due to the long holiday starting Thursday in observance of All Souls and Saints Day.”
The brokerage noted that the US economic indicators due this week included personal income and outlays, consumer confidence, jobless claims, ISM [Institute of Supply Management] manufacturing index and the employment situation.
Ahead of the long weekend, several big companies are scheduled to release their nine-month and third-quarter corporate results this week, including Ayala Land Inc. and Manila Electric Co. (Monday), Holcim Philippines (Tuesday) and Bank of the Philippine Islands and Aboitiz Equity Ventures (Wednesday).—Doris C. Dumlao
