The movement of the local stock market will remain sensitive to external developments after crucial upbeat 2013 Philippine economy results were announced and failed to cheer markets up on the day the data were released.
Abbygayle Estrella, equities analyst at AB Capital Securities Inc., said in a phone interview that despite major news such as the Philippine economy growing by 7.2 percent in 2013, domestic shares still opted to remain on the red side toward the end of the Thursday session, the last trading day of the prior week.
“For this week, we’ll continue to move sideways. It even moved sideways last week where a lot of developments actually happened,” she said. Estrella was referring to the 2013 gross domestic product result (GDP) announcement and the US Federal Reserve further tapering its monthly bond buying by another $10 billion.
“This week, we will be looking for new leads. We’ll be influenced by external developments since the GDP result announcement was already over,” she reiterated.
For the last trading session for the week, the Philippine Stock Exchange index (PSEi) went down by 0.47 percent, or 28.65 points to 6,041.19, while the broader all-shares index dipped by 0.44 percent, or 16.34 points to 3,675.92.
On Wednesday, however, Philippine shares managed to break from their two-day losing streak, after US equities showed some improvement. For the first two days in last week’s trade, Philippine shares dipped as investors opted to cash-in gains.
“Investors continue to strike a fair balance between and among the domestic and global economic outlook, corporate earnings and potential disruptions by geopolitical stirrings both near and far,” Jun Calaycay, Accord Capital Equities Corp. analyst, said.
“Thus, after having turned in the best weekly performance in the still young year, the PSEi and the rest of the sector sub-indexes posted their second and worst weekly return,” he added. Regional markets, including the Philippine stock market, were closed on Friday as the calendar transitioned to the Year of the Wooden Horse.