THE first full week trade for the country’s stock market will start today with an outlook that has somehow improved compared to how some previously predicted the local market would be this year.
“Investors will start the first full week of trades practically where it ended 2013. We expect volume and value turnover to pick up substantially as liquidity in the region rises with Japanese markets rejoining the action,” Jun Calaycay, Accord Capital Equities Corp. analyst, said.
“It is too early to tell whether investors are holding back on their equity commitments while waiting for domestic economic numbers. It would be safe to infer however that the outlook has improved from the almost entirely bearish tone of the last quarter to a more sanguine disposition,” he further said.
According to him, participants can now find an almost mix of bearish and bullish pronouncements suggesting that even some of last quarter’s bears may have reconsidered their positions.
On the first trading of the year, which was on Thursday, Philippine shares found itself going back to the 5,900-level as optimism toward another year stirred.
Philippine Stock Exchange index (PSEi) then climbed by 1.60 percent, or 94.43 points to 5,980.26, while the broader all shares went up by 1.23 percent, or 44.51 points to 3,658.83.
Calaycay earlier cited that during that day, local share prices posted its best start since the 5.4 percent in the first session of January 2009.
However, the optimism within the market didn’t prolong up to the second trade of the year as the overall sentiment in other regional markets went moody after a profit-taking occurred in Wall Street.
“Markets across the Asia-Pacific region took their hint from the negative action in US equities overnight as analysts predict equities to slow this year,” Calaycay commented.
“Amid a rather dry news cycle, investors and fund managers opted to book gains of the late December rally that pushed both US measures to record levels,” he added.
The benchmark index then slipped by 0.61 percent, or 36.33 points to 5,947.93, together with the wider all shares, which went down by 0.30 percent, or 10.92 points to 3,647.91.