PH shares in for choppy trade


    PHILIPPINE shares are in for choppy trading this week as the market remains hungry for market-lifting news after the PSEi lost its footing and fell below the 7,000 level on bets that the Federal Reserve would start to raise interest rates this month.

    The market will be watched for any reaction to the resignation of Vice President Leni Robredo as a Cabinet member.

    Luis Limlingan, managing director at Regina Capital Development Corp., sees the market moving paractically within the 6,700 to 6,900 range “but still with a bearish bias due to consecutive lower highs formed since November.”

    On the other hand, the bellwether PSEi “might go through choppy trade this week in the absence of leads, although some local fund managers might seize on the latest decline to position for 2017,” according to online brokerage 2TradeAsia.com

    However, extended losses may spur short-term bargain hunting, Limlingan noted. “Short-term traders may utilize oversold rallies for quick , but keep in mind that whipsaws are commonplace this week because of the index’s high volatility conditions.”

    Summit Securities Inc. President Harry Liu expects the PSEi treading between 6,800 and 7,200 towards year end, noting the US interest rate hike this month is being princed into the market.

    “Hopefully nothing changes on the political scene and in the infrastructure projects. The direction of the US is okay, even with the rate increase,” Liu noted over the weekend.

    “Then oil prices should be looked at properly as this may trigger inflationary pressure. So with all of those factors within parameters—oil price increase, Fed interest rate hike, continuous economic development and infra spending—I think the market will be steady,” said Liu.

    Liu is keeping a postive outlook, citing the likelihood of an economic expansion due to accelerated infrastructure developments under the Duterte administration and higher OFW remittances that could create spike in consumer spending in the first quarter of next year.

    On Friday, the main PSEi jumped by 0.32 percent or 21.87 points to 6,886.74, while the wider All Shares index also increased by 0.19 percent or 7.96 points to 4,166.49.


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