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CORPORATE results due this week at some of the Philippines’
biggest companies will have a major bearing on the direction of the
stock market, dealers said last Friday.
However inflation concerns would continue to
weigh on the market, they added.
“Most of the investors will stay on the
sidelines. They would like to see initial [corporate] figures like
earnings for the first quarter to see if they are affected or
not,” by rising commodity prices and the US economic slowdown,
said Astro del Castillo of First Grade Holdings.
For the week to May 2, the composite index fell
54.98 points or 1.98 percent to 2,722.95 points.
Average daily turnover slipped to 1.069 billion
shares but average value rose to P2.17 billion from 2.22 billion
shares worth P829.5 million in the previous week.
“The market’s weakness will continue [this]
week as investors are anticipating a not-so-good inflation report.
Higher inflation will dampen demand and lower output by
companies,” said Lawrence de Leon of Accord Capital Equities.
“Subsequently, this will translate into lower
margins and profits.”
Del Castillo said “[this] week, we will
continue to run with the overseas markets, we will continue to feel
the pulse of the other markets.”
But he said the market could consolidate “with
an upward bias given the tapering of oil price markets and the
recent cut of the [US] Federal Reserve. And hopefully corporate
earnings will be positive.”
He cited the recent Federal Reserve rate cut,
the drop in oil prices and even the stabilization of rice prices in
recent days as positive signs.
-- AFP
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