• Market may track few local leads

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    Given the week performance of the local stock market in the prior week, investors might start taking account some few local leads this week.

    Jun Calaycay, Accord Capital Equities Corp. analyst, said that the upcoming release of the country’s third quarter gross domestic product (GDP) as well as the result of corporate earnings should both provide investors enough drive in the next few days.

    “Third quarter GDP is calendared to be released by the end of the month. We expect the number to land anywhere between 6.2 percent and 6.7 percent, which, while slower than the pace of the first two quarters, will keep the year-to-date still apace with and close to the upper end of the 6 percent to 7 percent full-year target set by the government,” he said.

    “The release of the bulk of the earnings numbers should have lent a semblance of optimism, enough to trump the negativity sourced from outside the country—at best, its impact has been rather muted,” Calaycay added.

    However, in the weekly outlook of online brokerage firm 2TradeAsia, it was mentioned that “overseas volatility to prevail” in the next trades.

    “Fed chair-nominee [Janet] Yellen’s indication to support the continuity of stimulus plan in the US has been well received by market players. Interest could wane, however, if indications would fall short of details, which could spell added volatility for global equities over the near-term,” the brokerage pointed out, referring to the US Federal Reserve.

    “Apart from labor numbers, inflation data might take hold, given expectations of increased demand towards the latter part of the year,” it added.

    In the prior week, the Philippine Stock Exchange index (PSEI) closed eight notches lower at 6,346, or 0.14-percent down week-on-week with the pace of average participation standing lower at 8 percent to P7.3 billion, on frail market breadth, 82-67.

    According to 2TradeAsia, the main gauges were relatively unscathed during the week, after moving within the 6,202-point to 6,380-point ban.

    “Attention was largely on relief efforts from Yolanda’s aftermath, including the market’s response to P400 billion estimated special deposit accounts [SDAs] that will be pulled out from the central bank by end-November,” the online brokerage firm said.

    For his part, Calaycay said no an “all-clear” signal emerged from the charts after last week’s trades.

    “At best, it keeps investors guessing on what the next month-and-a-half of action will bring,” he further said.

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