The Philippine stock market is expected to come strong at the start of the week but will begin to slow down as the “ghost” month of August begins.
Harry Liu, president of Summit Securities Inc., said that the market will “open strong” for the week and will eventually slow down, staying “above 6,750” point.
“We will expect market to slow down and continue medium term consolidation [around]6,150 to 7,000 [levels toward the month of August],” Liu said.
August is considered as the “ghost month” for the market since it is a “Chinese month to honor the dead” and trading will be sluggish.
Liu sees market performance slowing down, but eventually picking up in the latter part of the year.
“But the long term market is still in upward looking direction [toward the end of the year],” he said.
On Friday, the Philippine stock exchange index (PSEi) fell 0.54 percent or 36.49 points to 6,763.62, while broader all shares also slumped by 0.44 percent or 18.12 points to 4,114.99.
KRISTYN NIKA M. LAZO