PH shares seen locked in seesaw movement

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Since the same global concerns are expected to linger among investors, the local stock market is still seen locked in a seesaw movement.

In a text message, Elizabeth Abadillo, analyst at Angping and Associates Securities Inc., said that the same global and local factors will keep dictating market movement.

“For this week, market will consolidate with downward bias,” she further said.

Jonathan Ravelas, chief market strategist of BDO Unibank Inc., said that the market will go “sideways to down” this week, still because of concerns on Syria and tapering talks in September by the US Federal Reserve.


However, Jun Calaycay, Accord Capital Equities Corp. analyst, noted that a more aggressive push from United States President Barack Obama during the Group of 20 Summit and an apparent growing consensus among the delegates that the “world cannot stand idly by” make a military action in Syria a near certainty.

“If history holds, the start of such intervention should begin to ease excessive pressure on oil prices and stocks,” Calaycay said, adding that it will leave the Fed Meeting on September 17 to 18 as the remaining major uncertainty that has kept a lid on local equity prices.

From a technical standpoint, Calaycay further said that a three-week decline in the main index should invite more bargain hunters to the table, which should lend an upward bias to sentiments.

On Friday, Philippine shares concluded the week in the green after having to trade back and forth from the red side.

According to Abadillo, the market only went up slightly because most of the investors are still cautious on concern of Syria and the tapering stimulus, which were cited as the same reasons that have upset the market all throughout the week.

The Philippine Stock Exchange index managed to cap the week on the green side, rising by 0.26 percent, or 15.40 points to 5,974.62. The wider all-shares barometer also registered slight gains, edging a bit by 0.09 percent, or 3.26 points to 3,659.73.

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