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LOCAL share prices are due for a technical rebound this week after
companies lost almost a tenth of their value in the past five
trading days amid fears of a US recession, dealers said last Friday.
“The market is ripe for a bounce. Investors
may have realized this week’s selling is overdone,” said Astro
del Castillo of First Grade Holdings.
“But, of course, with the negative news
abroad, investors will keep their ears to the ground. Nobody will be
daring enough to make aggressive moves,” he added.
The United States remains the Philippines’
largest trading partner and more than 40 percent of some eight
million Filipinos based abroad are in the US.
Conrado Bate of Citiseconline agreed that any
gains next week would be fleeting.
“Any rally will be short lived. I can’t see
any serious redemption yet as investors all over are not convinced
that the US [Federal Reserve] is in control of the situation,” he
added.
For the week to January 18, the composite index
fell 335.4 points, or 9.6 percent to 3,168.30.
Average daily turnover rose to 2.24 billion
shares worth P3.64 billion compared with 2.1 billion shares worth
P3.24 billion in the previous week.
-- AFP
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