The local stock market is expected to be on a holiday mode starting today toward the end of the year. Hence, flattish trade is seen for Philippine shares during the shortened trading week.
Astro del Castillo, First Grade Finance managing director, said in a phone interview on Sunday that the market seems to be in a holiday mode already.
He said that a cluster trade is expected starting today, given that it’s already one day before the market takes a break for Christmas Eve on Tuesday and Christmas day on Wednesday.
“There will be no major movements. The market may move flattish,” del Castillo said, adding that investors are not anticipating any big news locally and globally.
“Only a miracle will lead us back through a higher level toward the end of the year, but we’re still hoping the market will reach the 6,000 [-point] level,” he added.
The market further succumbed to volatility on Friday, as investors continue to weight the actual impact of US Federal Reserve’s tapering of its bond-buying program.
“Market remains tentative as players assess impact of taper,” Jonathan Ravelas, chief market strategist at BDO Unibank Inc., said in a text message.
Ravelas was referring to the Federal Reserve tapering announcement on Thursday, which involves the trimming of its government-backed bonds purchases by $10 billion to $75 billion a month starting January.
The Philippine Stock Exchange index (PSEi) fell hard during the last trading day of the prior week by 1.49 percent, or 87.99 points to 5,835.13, while the broader all-shares barometer snapped by 1.22 percent, or 44.19 points to 3,589.13.
The market started to make a correction on Thursday when the benchmark index snapped out of its four-day run up.
After a four-day winning streak, Philippine shares closed at the red side, wiping out the gains it had during the early hours of the session. This is in contrast with the positive movements recorded in other regional markets, which was driven by the Federal Reserve tapering announcement.
The PSEi dipped significantly on Friday by 1.49 percent, or 87.99 points to 5,835.13, while the broader all-shares index snapped by 1.22 percent, or 44.19 points to 3,589.13.