• Local market to further move sideways this week


    Unless investors will be able to find clear leads that will guide them throughout the remaining trading sessions for this year, the Philippine equities market may still go on a sideways trend in the next few days.

    In her weekly outlook, Maria Arlysa Narciso, an analyst at AB Capital Securities Inc., said that the coming week will be muted and still lacking in direction, as all eyes turn to US Federal Reserve’s meeting on December 17 to 18.

    “A consolidation is not ruled out as we have no strong catalyst to move higher,” she said.

    She cited that although the benchmark index is already 45.6 points below last year’s close, it could still retrace its path back to

    5,800 to 5,900 points next week, provided there is enough confidence in the market or in large-capital issues.

    “The bleak to neutral outlook for US and the Philippines also bear weight on the PSEi [Philippine Stock Exchange index],” Narciso further said.

    “Yearend window dressing may provide the final push that will let the PSE-close above 5,800 this year. The best action to take is to see how the global markets will take the decision or outcome of Fed’s meeting next week,” she added.

    Freya Natividad of Papa Securities Corp. said that for next week, the 5,700-point level would be retested with the market facing further consolidation.

    In the prior week, the PSEi wiped out its gains thus year gains as it retreated to 5,767.13 on Friday. In 2012, the PSEI closed at 5,812.73.

    “It was a tough week for the market as the economic condition of US showed increasing confidence on attaining recovery. This, however, is a double-edged sword. The largest world economy is nearing an imminent asset purchase pullback once labor, inflation, and growth show

    sustained positive figures. As this worry continued to hound the local market, it slipped and fell -4.12 percent week-on-week. This Friday, it touched its lowest level of 5,709.34,” Narciso said.


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