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LOCAL share prices will be traded cautiously this week once trade
resumes after the Easter weekend and with concerns over the United
States economy dominating sentiment, dealers said last Wednesday.
“Investors are still nervous because there
might be more surprises and more bad news from the US financial
sector in the coming days,” said Lawrence de Leon of Accord
Capital Equities.
Wall Street has taken a beating recently as
jitters resurface over the financial sector despite a hefty rate cut
by the Federal Reserve aimed at boosting market confidence.
Analysts expect the financial troubles in the
United States may take longer to resolve than the last savings and
loans crisis in 1989-1990 and will continue to depress market
sentiment in the months to come.
This has raised fears of a prolonged United
States recession which holds the potential to seriously damage
exports from Asia.
“Investors will remain cautious and won’t
take long positions because recent rallies on Wall Street proved to
be unsustainable,” added Francisco Liboro of PCCI Securities.
For the week to March 21, the composite index
fell by 88.95 points or 3.06 percent to 2,817.58.
Average daily turnover rose to 1.12 billion
shares but average daily value fell to P2.3 billion from 938.8
million shares worth P3.04 billion in the previous week.
Financial markets will resume trade on Tuesday.
-- AFP
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