• SHARES OUTLOOK FOR THE WEEK:

    Market to watch IPO take-up

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    SHARE prices are likely to trade sideways this week as investors settle their accounts ahead of two initial public offerings (IPOs) after this week.

    Harry Liu, president of Summit Securities Inc., said the market will be on the lookout for positive catalysts to move the market this week.

    “For now, short-term, we’ll be watching the success of the initial public offering (IPO) to feel the technical investors’ sentiment out,” Liu noted.

    Eagle Cement started its offering on May 15 and will end today (May 22). It targets to list on the Philippine Stock Exchange on May 29. It priced its IPO at P15 per share. The cement maker is selling 500 million primary shares with and an overallotment option of 75 million shares.

    Cebu Landmasters Inc. is also conducting an IPO of 505 million primary and secondary shares at P5 per share, with an overallotment option of 75 million shares.

    “We see the market moving sideways for the week,” Regina Capital Corp. President Marita Limlingan said.
    “We don’t see any news that will have an impact on the market. Earnings season practically over, the gross domestic product is already out,” she added.

    Online brokerage firm 2TradeAsia said portfolio repositioning is likely the play this week, as investors sell some their holdings to pay for Eagle Cement and Cebu Landmasters shares.

    On the spotlight is the upcoming meeting of the Organization of the Petroleum Exporting Countries. Members are expected to sign a deal prolonging output curbs for another six or nine months to boost prices until next year and stabilize the market, according to 2TradeAsia.

    “With good track record of compliance, extending this deal could help bring down supply to its five-year average. However, US output might still serve as the biggest lag in the agreement, especially since US shale oil producers have been achieving record levels in production. Speculation and hype might continue to drive the oil market, rather than fundamentals, until resolutions are in place with major US oil producers,” it said.

    On Friday, the bellwether PSEi gained 0.13 percent or 9.93 points at 7,767.62. The wider All Shares increased by 0.17 percent or 7.83 points to settle at 4,634.25.

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