LOCAL stocks will remain sensitive to what will happen overseas in the next few days because market participants are not anticipating any lead from the local side.
Abbygayle Estrella, AB Capital Securities Inc. analyst, said in a phone interview that Philippine shares may move sideways this week the same way it did last week.
”For next week, the PSEi [Philippine Stock Exchange index] will still move sideways although there’s a positive bias since we maintained the 6,000-resistance level,” Estrella said.
She also said investors may focus more on the foreign developments since no major data is being anticipated on the local side given that the 2013 gross domestic product (GDP) data was already released.
”Halfway through the first quarter, two important economic data have come out—and both tend to raise the ante on fear, or at the very least, caution,” Jun Calaycay, Accord Capital Equities Corp. analyst said.
”Before the close of January, the NCSB [National Statistical Coordination Board] released the keenly-awaited 4th Quarter GDP.
After having grown at 7.8 percent, 7.5 percent and 7.0 percent in the first three quarters, respectively, the pace slackened to only 6.5 percent in the fourth, dragged by the impact of [Super Typhoon] Yolanda’s destruction. Yet, it still came in better than expectations—consensus estimate was pegged at 6.0 percent,” he further said.
However, DA Market Securities Inc. analyst Nisha Alicer believes that the market may proceed with the positive momentum that has started Wednesday last week.
”On the back of US market surge from positive employment data, also tracking Asian markets, the PSEi continued to bounce back above critical 6,000 support, a positive sign,” Alicer said.
”Fundamentally, BSP [Bangko Sentral ng Pilipinas] keeping rates steady and the lowering of inflation forecast for 2014 had eased investor concerns. We are also looking forward to continued release of positive year 2013 earnings results. We will be monitoring company guidance for 2014,” she added.
The benchmark index went up significantly on Friday by 1.63 percent, or 96.55 points to 6,011.14, while the wider all shares rose by 1.25 percent, or 45.25 points to end at 3,655.93.
Also on Thursday, Philippine shares have extended its run for the second day of last week, prolonging the momentum it had on Wednesday.
Although it didn’t manage to go back to 6,000-level, local stock market was still able to break away from its three-day losing trend on Wednesday and went up for the first time this week. From Thursday the other week to Tuesday last week, the market has been succumbing to correction because of negative external developments.